General Understanding Questions

What is the difference between LOS and LMS?

What are the key stages in the Loan Origination process?

What are the modules typically found in an LOS?

How does an LMS help in managing customer loans post-disbursement?

What types of loans have you tested (home, personal, auto, business)?

🔧 Functional Testing Interview Questions

How do you test the loan application intake in LOS?

What are the validations you check during borrower onboarding?

What is your test approach for the credit scoring or underwriting module?

How do you verify document upload and KYC validation features?

How do you ensure the EMI schedule is calculated accurately in LMS?

What is your approach to testing foreclosure or prepayment logic in LMS?

⚙️ Integration/API Testing Questions

Which third-party integrations did you work with in LOS (e.g., CIBIL, PAN,
Aadhaar)?

How did you test integrations with payment gateways or CBS (Core Banking System) in
LMS?

What APIs are involved in loan disbursement and how did you test them?

Have you tested integration with credit bureaus? What were the key scenarios?

How do you handle failures in API responses in the LMS flow?

🧪 Scenario-Based Questions

A borrower’s credit score drops below the threshold mid-process. What should happen
and how would you test this?

A customer tries to foreclose the loan in LMS, but there’s a partial EMI pending.
How do you test this edge case?

The system is calculating an incorrect interest amount for variable rate loans. How
will you debug and validate it?

If a co-applicant is added mid-loan origination, how would you handle the

🔐 Security & Compliance Questions

How do you test for data masking or encryption of sensitive data like PAN or
Aadhaar?
What compliance checks (like RBI norms, KYC, AML) do you test in LOS/LMS?

How do you verify the audit trail and access logs in the LMS?

🧩 Test Artifacts & Process Questions

What kind of test cases did you write for loan rescheduling or moratorium in LMS?

How do you track and test the loan repayment lifecycle from disbursal to closure?

Have you worked with test data generation for large loan portfolios? How did you
handle it?

What are the key metrics/KPIs you track for LOS/LMS testing?

💡 Tools/Tech-Specific Questions

What automation tools have you used for LOS or LMS testing?

Did you use any SQL queries for validating repayment schedules or loan details in
the database?

Which reporting tools or dashboards have you worked with for loan tracking and
testing?

Have you worked with any Loan platforms like FinnOne, Temenos, Finastra, or
Flexcube?