A loan officer is examining your income and the amount of your existing debt payments in deciding whether to make a loan to you today.Which aspect of the 5 Cs of lending is the loan officer most likely looking at?
A)character
B)capacity
C)capital
D)collateral
E)conditions

Question

Quizplus · Accepted Answer

The loan officer is most likely looking at the capacity aspect of the 5 Cs of lending, which refers to the borrower's ability to repay the loan based on their income and existing debt payments.

A Loan Officer Is Examining Your Income and the Amount