Q2
Q2.
a) CAMPARI approach stands for Character of the customer, Ability to borrow and repay, Margin of profit, Purpose of the loan, Amount of the loan, Repayment terms and Insurance against the possibility of non-payment.
For character of the customer, it represents the background and experience of the individuals, which including integrity, past performance, and evidence of financial acumen.
First, Darren Li has a good payment record during the 5 years with our bank. Also, our bank had granted him a HK$200,000 overdraft facility for private uses in 2013, which had not recorded any overdue payment or other problems. He also did not require to extend his overdraft amount for private uses with generally only used half of the overdraft amount and able to pay monthly interest. It represents he is not an upstart and has fair ability to control his money expenses.
For his personality, as the breadwinner of the family, he aged 40 and has been worked in company over ten years. The bonus of business performance also indicates he is a steady, responsible and hardworking person who can be more guaranteed for his payment.
For ability to borrow, it looks into the borrowers’ sources of income and financial condition.
As we mentioned, he has married and have 2 children. He also owned an apartment with 5 years, which can be proved he is a more stable person. Moreover, he has been worked in the company over ten years as a sales manager which is a rather unstable job that more easy to be affected by other factors like economy and personality. Also his wage is mainly occupied by commission which is not steady. However, he has an average monthly income of HK$50,000 (600,000/12), which is quite high for individual. Nevertheless, his wife does not have a job and his children are both under 18, which mean he is the only person to earn money for the family.
He is 40 which staged at his prime of life, if there is no evident, it is not necessary to worry his health condition.
For
a) CAMPARI approach stands for Character of the customer, Ability to borrow and repay, Margin of profit, Purpose of the loan, Amount of the loan, Repayment terms and Insurance against the possibility of non-payment.
For character of the customer, it represents the background and experience of the individuals, which including integrity, past performance, and evidence of financial acumen.
First, Darren Li has a good payment record during the 5 years with our bank. Also, our bank had granted him a HK$200,000 overdraft facility for private uses in 2013, which had not recorded any overdue payment or other problems. He also did not require to extend his overdraft amount for private uses with generally only used half of the overdraft amount and able to pay monthly interest. It represents he is not an upstart and has fair ability to control his money expenses.
For his personality, as the breadwinner of the family, he aged 40 and has been worked in company over ten years. The bonus of business performance also indicates he is a steady, responsible and hardworking person who can be more guaranteed for his payment.
For ability to borrow, it looks into the borrowers’ sources of income and financial condition.
As we mentioned, he has married and have 2 children. He also owned an apartment with 5 years, which can be proved he is a more stable person. Moreover, he has been worked in the company over ten years as a sales manager which is a rather unstable job that more easy to be affected by other factors like economy and personality. Also his wage is mainly occupied by commission which is not steady. However, he has an average monthly income of HK$50,000 (600,000/12), which is quite high for individual. Nevertheless, his wife does not have a job and his children are both under 18, which mean he is the only person to earn money for the family.
He is 40 which staged at his prime of life, if there is no evident, it is not necessary to worry his health condition.
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