Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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Why Debt is a lower risk source of funding than equity???Debt is generally considered a lower risk source of funding than equity for a few reasons.1) No dilution of ownership: When a company issues equity, it dilutes the ownership of existing shareholders. This can lead to a loss of control over the company, which is not the case with debt financing.2) Interest payments are tax-deductible: Companies can deduct interest payments on their debt from their taxable income. This reduces the amount of taxes they need to pay, making debt financing a more cost-effective option compared to equity financing3) Prioritization of payment: In the event of bankruptcy or liquidation, debt holders have priority over equity holders for payment. This means that debt holders get paid back before equity holders, reducing the risk for the lender.4) Fixed obligation: When a company takes on debt, it has a fixed obligation to pay back the principal amount plus interest to the lender over a specific period. This obligation does not change regardless of how well or poorly the company performs. On the other hand, when a company issues equity, it is not obligated to pay dividends or buy back shares...However, it's important to note that too much debt can also be risky as it can lead to financial distress and even bankruptcy. Overall, the Debt & Equity ratio is an important metric that lenders use during credit underwriting to assess a borrower's financial risk and determine its creditworthiness...
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Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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I’m happy to share that I’m starting a new position as Sr. Vice President I Head - Credit Underwriting at Criss Financial Limited!
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Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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Yesterday, I conducted a small survey about the most effective method for personal discussions (PD) during credit underwriting. I received a good response, with most people favoring physical in-person visits. As a credit professional, I also support the idea of physical visits. However, we must acknowledge the advancements in technology in the lending industry. Nowadays, we can assess fraud, customer capacity, and other details using tools like credit scorecards, psychometric tests, fraud checks, account aggregators, social media, and PEP & eKYC. This allows us to verify the borrower's details without visiting the customer's place. (All credit 6 C's)Both methods have their pros and cons. Physical visits incur higher costs, have geographical limitations, and consume more time. On the other hand, technology enables us to expand our reach, reduce costs, and save time. Even when our credit team personally visits customers, some customers manage the process smoothly without raising suspicion to the credit manager.Regardless of the method we use, I strongly believe that as good credit managers, we must stay updated with market conditions and maintain a vigilant approach and adaptability in our processes.
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Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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📢 Job Opening Alert! Senior Risk Manager - Housing LoansWe are excited to announce an immediate opening for the position of Senior Risk Manager at our esteemed organization. If you have a passion for risk management and extensive experience in the credit or risk department, this opportunity is perfect for you!Requirements:✅ Minimum of 7 years of experience in the Risk or Credit department✅ Strong background in Micro LAP, Affordable Housing Loans, or Secured Loans✅ Excellent communication skills✅ Sound knowledge of credit underwriting✅ Proficient in Excel and PowerPointLocation: HyderabadAs a Senior Risk Manager, you will play a crucial role in assessing, analysing, and mitigating risks associated with our housing loan portfolio. Your expertise will help us make informed decisions while ensuring the financial well-being of our organization.Responsibilities:🔹 Conduct thorough risk assessments for housing loans🔹 Develop and implement risk management strategies🔹 Collaborate with various departments to enhance credit underwriting processes🔹 Provide insights and recommendations to senior management🔹 Monitor and analyze portfolio performance🔹 Prepare comprehensive reports and presentationsAt our company, we foster a dynamic and inclusive work environment that encourages growth and innovation. You will have the opportunity to work with a talented team of professionals and contribute to our continued success.If you meet the requirements and are eager to take on this challenging role, we would love to hear from you. Please send your updated resume to [email protected] with the subject line "Senior Risk Manager - Housing Loans." We look forward to reviewing your application.Feel free to tag and share this post with anyone in your network who might be a suitable fit. Together, let's build a strong team and drive excellence in the housing loans sector!#JobOpening #RiskManager #HousingLoans #CreditUnderwriting #HyderabadJobs
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Lakshmi Kanth
Sr.Vice President I Head - Credit Underwriting at Criss Financial Limited
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Dear Vskills team,I wanted to express my sincere gratitude for the interview opportunity and for sharing it on LinkedIn. I truly appreciate the time and effort that you took to consider me as a candidate and the kind gesture of promoting the interview on your professional network. Your support means a lot to me, and I am honored to have had the chance to discuss my skills and experience with your team.Thank you once again for your time and consideration. I look forward to any future opportunities that may arise.
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