How Much Is Entry Level Credit Analyst Salary In 2024?

Hello, my name is Sid.

I am a Credit Analyst at Barclays. My primary tasks as a credit analyst include monitoring and controlling financial accounts. In this article, I will give an overview of credit analysis, credit analyst salary, and much more.

All About Myself:

Hello, my name is Siddhant Garg. I graduated with a bachelor’s degree in mathematics. Also, I undertake part-time investing in the Indian stock market by researching the company and its operations, then attempting to conclude before deciding whether to invest in the firm.

Since May 2021, I have been working as a credit analyst for Barclays. My primary tasks as a credit analyst include monitoring and controlling financial accounts and assessing clients’ financial circumstances to calculate various ratios using the company’s pre-defined ratio format to generate reports for the company.

Now, let’s dive into the Entry Level Credit Analyst Salary article.

Overview Of Credit Analysis:

Credit analysis is the process or practice to check the creditworthiness ability or capacity of any company, individual, or any borrower to repay the debt or the loan which he takes from the banks and the company which provides the loan.

In the growing economy of every country, new businesses are getting formed with the good speed we can see the scenario.

1) In current we can see there is the demand of funds everywhere in various things whether someone is starting any business or need for personal expenses. Companies, organizations are expanding their business operations in new geographies all those need funds to raise they go for debt or credit.

2) Individuals are taking various loans such as home loans, personal loans, car loans, education loans to make their lifestyle better.

Lenders, Investors, HNIs, Investment banks, commercial banks are coming in front to provide or avail the loans for those who require them.

Providing funds or debt to anyone whether it is individual or company, Fund providers look for trustworthy borrowers. Banks and other money lenders check the past credit history of the borrower while providing any type of debt here credit analysis comes into the picture of the analysis financial position of the borrower or the business, so they become satisfied to provide the credit to the debtor(borrower).

The 5 C’s of Credit comes in the picture to check the credit quality:

• Character – It talks about the credit history of the borrower or person, who comes to take a new loan or the borrowing from the banks, moneylender, or any financial organization.
• Capacity – Capacity comes with the borrower’s balance of debt to income it defines the ratios of debt and income means how much debt and income browning is managed over the period, like how much income of the debtor and how much debt the borrower have.
• Capital – Analysts check the capital of the borrower while providing credit to know how much capital they are bringing on the table or the percentage of the required total amount, it helps the bank to reduce the risk of the default because banks or lenders can convert into the percentage of the amount applicant need. Minimum 20% capital from the debtor side is mandatory while taking any kind of credit.
• Conditions – Condition comes with various things such as purpose or reason for taking the loan, risk involvement, and the interest rates which banks will charge on the loan amount. If the applicant is successful to fulfill all the conditions so chance of taking a loan increases.
• Collateral – If the applicant or the borrower do any default in future s banks and money lenders can easily recover their loan amount with using collateral, Collateral can be the financial assets to any physical assets which applicant summit as security for the loan to banks, It comes under secured loan because banks can easily recover their loan amount and chances of losing money decrease for the banks and money lenders.

Credit Analyst Salary Details:

• Entry Level– Entry-Level Credit Analyst salary ranges from 4 lakhs per annum to 6 lakhs per annum depending on the qualification, certification, and skills required for the post. Equally, those with 0 to 2 years of industry experience are considered in this category, although freshers are also important for entry-level jobs where they can learn and advance into higher roles in the company’s credit analyst area.

• Mid-Level– At this level, the industry considers candidates with at least 4 – 5 years of experience in a credit analyst role; salary ranges, however, vary depending on the previous drawn salary; however, as candidates become more familiar with the industry and the work, the company provides good salary packages based on their experience and expertise, with salaries ranging from 8 lakh to 14 lakhs per annum. If a candidate is extraordinary, the organization will promote them to the manager or team leader.

• Senior Level –In senior positions in credit departments, mostly senior managers or assistant vice presidents, presidents come into play; they have 8-10 years of experience in the same domain with their expertise, so they get a good salary package such as 15 lakhs to 25 lakhs per annum, which is industry average for the role; however, salary standards vary from company to company.

In the next topic of the Entry Level Credit Analyst Salary article, we will discuss the roles of credit analysts.

Which Is The Best Credit Analyst Certification?

There are qualifications and courses to become a credit analyst, one of the popular and well-known courses of Corporate Finance Institute provides Commercial banking and Credit Analyst (CBCA) course. If you want to know more about CBCA read CFI CBCA Review.

Industry looks for candidates who have minimum qualifications such as MBA finance, B.com, and other certifications, CBCA was also acceptable in many companies they consider those candidates who have done the course with an excellent score. Many candidates bag good salaries package in big brands after completion of this certification course.

What Are the Roles of Credit Analyst?

• Evaluating credit risk – There is various risk involved which analyst monitor and review from time to time, Analyst review identify the risk before providing the credit and they also review after providing the credit.
• Analyze financial data – Financial data plays a key role; Analysts analyze the financial statements and financial history of the borrower so that they can check whether the borrower’s financial history is good or bad.
• Review credit limits of existing customers -Reviewing the current situation of the loan of existing customers it should be done in regular intervals.
• Due diligence –Extraordinary knowledge of accounting and financial approach help to create a good credit report because it is a matter of financial figures, analyst should be incredibly good in the numbers.
• Knowledge of industry -Industry knowledge helps to understand the business models, revenue generation strategies, and how the market is trending, so it always plays a key role to understand things and doing the job full of clarity.
• Ability to multitask – In this role of credit analysis multitasker is always good to have in this job because sometimes multitasking plays a crucial role.
• Well-versed with finance software – Every company has their software or working formats; however, Microsoft excel is one of the software which always beneficial for the analyst to do the calculation so everyone should be good at excel.

What Are the Top Skills That Are Valuable for Credit Analyst?

1. Accounting skills –Accounting skills helps to analyze all three financial statements inefficiently manner based on analysis, Analyst decides whether they should provide the Credit to their clients or not. They should have experience in accounting and analyzing financial statements inefficient manner.
2. Microsoft Excel – MS excel is an evergreen tool for any kind of data analysis or numerical calculation. MS Excel provides various features to clean the raw data, summarize the data, and make the data more understandable and visual for everyone. Today every industry requires MS Excel knowledge in the candidate due to managing the large quantity of numerical data.
3. Financial Ratio Analysis – Financial ratios are one of the important parts in the credit analysis there are various specific ratios for credit analysts which they analyze to make the decision, every ratio comes with the threshold (It is a limit or the industry benchmark which company set to analysis and making the resolution). Knowledge of financial ratios is intensely beneficial, in credit analysis.
4. Market research – All data is available on the intent in quarterly and annual reports, but analysts must have solid market research skills to uncover important data for analysis so that they can make decisions based on their study. Market research helps analysts become aware of interest rates, different rates, currency exchange rates, and so on.
5. Report writing – Today, credit rating companies, banks, and other financial service companies provide reports to clients and other customers for them to learn about a company’s or an individual’s credit rating
6. Communication skills – Communication skills are one of the most important skills to have in any industry. Credit analysts must occasionally interact with their clients to learn about their history and other information, so communication must be excellent so that analysts can easily interact with any customer in the industry.
7. Presentation skills – Due to a large amount of financial data presentation in credit analysis, analysts provide data in many formats, whether it is pie charts, bars, or any other. Presentation skills are also essential in the credit analyst profession due to a large amount of data presentation to management and customers.

How Employable Are Credit Analysts?

Credit analyst demand is increasing at a rate of 6% per year, with 41000 new job vacancies expected each year. The employment of credit analysts is increasing because of a considerable number of new firms coming up, all of which require financing to expand.

Because lenders, banks, and other financial institutions issue large loans to borrowers, credit analysis is required to create reports and analyses regarding the customer’s or borrower’s prior history.

Credit demand is rapidly expanding, and there are several job prospects in this area for those with the necessary qualifications to work as credit analysts.

Also, read Financial Analyst- Career Guide.

Top Sectors That Are Actively Looking for Credit Analysts:

Conclusion:

Credit analyst jobs are growing in popularity year after year, and many accounting professionals are shifting their careers to these roles because they enjoy them and because the companies now pay well for them.

This industry is growing rapidly, and there is an enormous demand for accounting and finance professionals in this area to contribute their skills and knowledge to help the company generate good revenue and profits. It aids in the expansion of the financial sector’s network, as well as providing opportunities for workers to advance their careers.

Many new businesses and enterprises are entering the industry, offering high-wage packages as well as jobs to employees who have the necessary skills, expertise, and knowledge. If a person believes they can deliver superior services while meeting the requisite qualifications, they should accept the position.

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I hope the Entry Level Credit Analyst Salary article was useful.