Having a bank account has become a necessity in recent times. Without baking operations, almost all aspects of our life are incomplete. Due to monetization, online payments and credit and debit card systems are high in trend, and without this, payment has become difficult. Individuals and all industries and businesses use a bank account separately for their organizations to carry on the day-to-day operations. In this rising trend, the credit manager job has gained a lot of importance. If you are someone who wants to be in a position to decide about the creditworthiness of different clients, their credit limit, or take control of the entire credit management, then this job is perfect for you.
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Who is a Credit Manager ?
A credit manager is a person who is responsible for credit management. An organization employs them to manage the credit department and make decisions regarding the credit limits, level of risk, terms of payment, etc. A credit collection manager will have different roles and responsibilities, but their main aim is to look after its credit operations.
What Does A Credit Manager Do ?
Credit managers are professionals who work for a particular organization to manage and look after credit management and make decisions regarding their credit limits. A credit manager plays a crucial role in a bank or any other organization as it is responsible for assessing the creditworthiness of an individual or a company. To fulfil the role of a credit manager job, a person should have an eye for detail and a thorough understanding of financial products. They explain to various customers the bank’s financial products such as loans, credits, and credit cards. Apart from describing various financial products to the customers, they listen to their needs and make suitable recommendations to realize their financial objective.
Credit Manager Job Duties Include :
- Evaluating the creditworthiness of the customers.
- Maintaining detailed records of company loans.
- Approving or rejecting the loans based on the available data.
- Calculation of the interest rates for loans.
- Reviewing and updating the company’s credit policy.
Also Read: Accountant Job Description
Job Brief of A Credit Manager
A credit manager’s job should briefly describe all the main tasks, roles, and responsibilities of a credit manager. Some of their primary roles are to assess the customers’ creditworthiness before issuing any credit, describe various products, conduct a review of the existing customers, and optimize the company sales. They should have good communication skills and speak in laymen’s language to communicate with every possible customer.
Responsibilities of a Credit Manager
A credit manager job has mainly two categories of responsibilities- management and credit operations tasks. Some of these crucial responsibilities are given below –
- Should be able to create credit scoring models as a credit risk manager.
- Should ensure that all the loans given out should comply with the procedures and regulations.
- Should be able to keep track and record the loan payments and bad debts account.
- Should lookout for the company’s credibility and potential revenues and losses.
- Should be able to negotiate loan terms with new and potential clients.
- Following up on the clients for debt settlement and loan renewals.
- Should possess a bachelor’s degree in accounting, economics, banking, finance, or other related fields.
- Experience as a credit manager, credit analyst, or other similar roles.
- Should have experience with different accounting software.
- Should understand the lending procedures.
- Should possess analytical skills to evaluate and create financial spreadsheets.
The Average Salary for a Credit Manager
The average salary for a credit manager in India varies significantly based on factors such as location, industry, experience, and the company. Below is a detailed comparison based on these criteria. The average salary for a credit manager in India is approximately ₹8,00,000 to ₹12,00,000 per annum.
City-wise Comparison
| City | Average Salary (INR) |
|---|---|
| Mumbai | ₹10,50,000 |
| Bangalore | ₹9,00,000 |
| Delhi NCR | ₹9,50,000 |
| Chennai | ₹8,50,000 |
| Hyderabad | ₹8,00,000 |
Industry-wise Comparison
| Industry | Average Salary (INR) |
|---|---|
| Banking & Finance | ₹11,00,000 |
| IT Services | ₹9,50,000 |
| Manufacturing | ₹8,00,000 |
| Consulting | ₹10,00,000 |
| Retail | ₹8,50,000 |
Experience-wise Comparison
| Experience Level | Average Salary (INR) |
|---|---|
| Entry-level (0-2 years) | ₹6,00,000 |
| Mid-level (3-5 years) | ₹9,00,000 |
| Senior-level (5+ years) | ₹12,00,000 |
Top Companies Comparison
| Company Name | Average Salary (INR) |
|---|---|
| HDFC Bank | ₹12,00,000 |
| ICICI Bank | ₹11,50,000 |
| Tata Consultancy Services (TCS) | ₹10,00,000 |
| Wipro | ₹9,50,000 |
| Infosys | ₹9,00,000 |
The data indicates that salaries for credit managers can vary widely based on the city and industry. Major metropolitan areas like Mumbai and Bangalore tend to offer higher salaries compared to other regions. Additionally, sectors such as Banking and IT provide more competitive compensation compared to Manufacturing or Retail. Experience plays a crucial role in salary increments as well.
Key Skills of a Credit Manager
Here are a few technical and soft skills an individual needs to possess as a credit manager –
- Should have strong negotiation skills.
- Able to work under pressure.
- Analytical skills.
- Should be good at maths.
- Excellent interpersonal skills are required for a credit manager job.
- Ability to pay attention to detail.
- Written and verbal communication skills.
Why Pursue a Career as a Credit Manager?
1. High in Demand
Credit managers are high in demand in many industries; they work with banks and credit rating industries. Apart from bank institutions, several other industries like auto manufacturers, retail store chains, and even energy companies offer credit to their customers, increasing the demand for a credit manager job.
2. Salary benefits
Moving along in this career, a credit manager takes more responsibility and can even take on a leadership role. As a person gains more experience in this field, their monthly salary can increase as well. After you gain a few years of experience, you can also apply for the senior-level credit manager post. It involves getting several years of banking experience, an advanced degree as an MBA, and in-depth knowledge of the subject. The average salary of a credit manager is reasonable when compared to the other fields, and when you get promoted, the salary benefits will increase as well.
3. Various fields to work in
Credit managers have a variety of fields to choose from, which will give them experience in diverse sectors. They have options to choose from – most of them work for lending institutions such as banks or insurance companies, while others prefer different fields. Several sectors require credit managers to uplift their customer support services and manage the finance of their firm. A credit manager’s job is not limited to just credit; they can either opt for a job in finance or as an accountant.
How to Become a Credit Manager?
1. Complete your high school
To become a credit manager, your competence is tested as early as your high school. When you finish your high school exams, the minimum percentage a person should get has to be above 60.
2. Bachelor’s degree
If you want to get into a reputed university after high school, you can write several entrance exams to accomplish your goal. If not a reputed degree, a mere bachelor’s degree can work too. Candidates must possess a degree in any of the commerce fields. Some of the popular fields are – finance, marketing, sales, and accounting. To get a good credit manager job, an individual must have a good score in their degree and have practical knowledge of the course they completed.
3. Post-graduation
A post-graduation degree will help candidates master their courses.; however, to become credit managers, candidates should have a minimum of 5 years’ experience irrespective of their post-graduation. However, a master’s degree will polish your skills and give you more experience in your respective field. Therefore, a particular person should gain as much experience as possible and enroll in post-graduation courses to better understand the subject.
These are the main steps one needs to complete to get a credit manager job. As this position requires more practical skills, book knowledge is not enough. You will have to handle all clients practically and deal with the new clients as well. Therefore, scoring well in your academics is also essential when it comes to this post. As you will be handling the credit management of various organizations of different fields, this job can help you get a lot of new experience as you have to deal with customers daily.
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