Cryptocurrency Q&A
What are the 4 C's of lending?
What are the 4 C's of lending?
BitcoinBaroness
Wed Jan 15 2025
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6 answers
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I'm trying to understand the basics of lending and I've heard about the 4 C's that are important in this process. Could someone explain what these 4 C's stand for and how they are relevant in the lending decision?
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6 answers
Bianca
Thu Jan 16 2025
Capacity refers to the borrower's ability to repay the loan, taking into account their income and expenses.
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Caterina
Thu Jan 16 2025
Capital represents the borrower's financial resources, including savings and investments, which can serve as a buffer in case of financial difficulties.
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Eleonora
Thu Jan 16 2025
Lending standards can vary significantly across different financial institutions.
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CryptoLodestar
Thu Jan 16 2025
Despite these variations, there are four essential factors that lenders universally consider when assessing a loan application.
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CryptoChieftainGuard
Thu Jan 16 2025
Collateral is an asset that the borrower offers as security for the loan, providing the lender with a means to recover their funds if the borrower defaults.
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