WorksheetsRetail Lending Certification Quiz
Total questions: 10
Worksheet time: 5mins
What is the primary role of BFIs in the financial sector?
To manage government funds exclusively
To only provide loans to large corporations
To channel financial resources from depositors to borrowers
To lend money without assessing credit risk
Which of the following is a purpose of credit in supporting Business Lending context?
To provide personal loans for vacations
To support business investment in working capital or capital expenditure
To fund government projects
To finance personal consumption
What is the first step in the credit risk identification process?
Assessing the borrower's credit history
Assigning a Credit Risk Officer to review loan files
Verifying the collateral value
Calculating the loan purpose
Which document is NOT required for Customer Due Diligence (CDD)?
Passport
National identity card
Business registration
Credit history report
What type of loan is suitable for a business needing flexibility in repayment during peak seasons?
Home Improvement Loan
Overdraft
Revolving Loan
Term Loan
What principle does a bank adhere to when ensuring that a loan is used for the right purpose?
Principle of Customer Satisfaction
Principle of Credit Assessment
Principle of Loan Utilization
Principle of Risk Management
If a borrower has a high Debt Service Coverage Ratio (DSCR), what does it indicate?
The borrower has multiple loans
The borrower has a strong repayment capacity
The borrower is likely to default
The borrower is in financial trouble
What should a bank do if a borrower has not paid for more than a year?
Send a notice of demand
Offer a new loan
File a lawsuit immediately
Ignore the situation
Which of the following is a sign of credit deterioration?
Stable income and business growth
Borrowing from multiple lenders in a short period
Timely payments on all loans
Consistent loan utilization
What is the purpose of a notice of demand letter?
To terminate the loan agreement
To inform the borrower of a loan approval
To request payment or action on a loan
To offer a new loan product
