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Questions tagged [5c principle]

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Valentina Valentina Thu Jan 16 2025 | 7 answers 1126

What is the 5C principle of lending?

The 5C principle of lending refers to five key factors that help financial institutions better assess the credit risk of borrowers. These factors are Character, Capacity, Capital, Conditions, and Collateral, which collectively aid in evaluating a borrower's willingness and ability to repay a loan.

What is the 5C principle of lending?

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