Banks consider the borrower's ability and willingness to repay the loan when evaluating loan applications.

Name: Banks consider the borrower's ability and willingness to repay the loan when evaluating loan applications.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Banks assess both the borrower's financial capacity (ability) to repay the loan, such as income and debt levels, and their credit history (willingness), which indicates how reliably they have repaid past debts.

Banks Consider the Borrower's Ability and Willingness to Repay the Loan