Which of the following factors of the CAMPARI approach deals with the capacity to repay the principal and the interest of a loan in a timely fashion?

Question

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The factor that deals with the capacity to repay the loan in a timely fashion is the "Ability" factor of the CAMPARI approach. The Ability factor looks at the borrower's financial situation and assesses if they have the ability to make regular payments towards the loan. The other factors are: Alliance (the borrower's relationship with the lender), Purpose (the intended use of the loan), Amount (the size of the loan), Insurance (the collateral or security provided for the loan).

Which of the Following Factors of the CAMPARI Approach Deals