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1. In loan underwriting, what does FOIR stand for?

Floating Obligation Interest Rate Fixed Obligation to Income Ratio Financial Overview Investment Record

2. Which of the following is generally considered an unsecured loan?

Personal Loan Loan Against Property (LAP) Auto Loan

3. What is the standard score range for a CIBIL credit report in India?

100 to 1000 300 to 900 0 to 800

4. If a property's market value is ₹1 Crore and the bank approves a loan of ₹75 Lakhs, what is the LTV?

60% 75% 85%

5. What does DSCR evaluate in commercial or business lending?

The value of collateral pledged against the loan The borrower's personal credit history Cash flow available to pay current debt obligations

6. Which action typically reduces the monthly EMI burden for a borrower?

Increasing the loan tenure Decreasing the loan tenure Switching from reducing balance to flat interest

7. What is a 'Moratorium Period' in the context of a loan?

The penalty phase for late payments A waiting period before loan disbursement A period during which the borrower is not required to make EMI payments

8. What does NPA stand for in the banking sector?

Net Principal Amount Non-Performing Asset National Property Assessment

9. Which of these loan types in India is most commonly linked to a floating rate based on the RBI Repo Rate (RLLR)?

Personal Loans Credit Card EMIs Home Loans

10. If an applicant has a high FOIR (e.g., 85%), how will a bank likely view a new loan application?

High risk; the application may be declined or require a co-applicant Low risk; they have plenty of room for more debt Neutral; FOIR does not affect new loan approvals

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