In the 5 Cs of Credit:Any asset of a borrower that a lender has a right to take ownership of and use to pay the debt if the borrower us unable to make the loan payments as agreed.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

In the 5 C’s of Credit:Any asset of a borrower that a lender has a right to take ownership of and use to pay the debt if the borrower us unable to make the loan payments as agreed.

A	Character
B	Capacity
C	Collateral
D	Capital
E	Conditions

Explanation:

Detailed explanation-1: -A collateral makes the loan a secured loan as financial institutions can seize and sell them in case of defaults.

Detailed explanation-2: -What are the 5 Cs of credit? Lenders score your loan application by these 5 Cs-Capacity, Capital, Collateral, Conditions and Character. Learn what they are so you can improve your eligibility when you present yourself to lenders.

Detailed explanation-3: -The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs-character, capacity, capital, collateral, and conditions-to set your loan rates and loan terms.

Detailed explanation-4: -Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

Detailed explanation-5: -Capital refers to your assets or net worth. Generally, the greater your capital, the greater your ability to repay a loan.

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