Questions tagged [lending]

Valentina Thu Jan 16 2025 | 7 answers 1126

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.

DiamondStorm Mon Dec 23 2024 | 7 answers 1380

DeFi lending in Bitcoin refers to the use of decentralized finance (DeFi) applications to facilitate lending and borrowing of Bitcoin. This allows individuals to earn interest on their Bitcoin holdings by lending them out, or to borrow Bitcoin for various purposes such as investing or paying expenses. DeFi lending platforms utilize smart contracts on the blockchain to manage these transactions, providing a secure and transparent way to engage in financial activities without the need for traditional banks or financial institutions.

SamsungShiningStar Tue Dec 17 2024 | 6 answers 1531

I'm considering getting into Bitcoin lending, but I'm concerned about the potential risks. I want to understand what the main risks are when it comes to lending out my Bitcoin, and how these risks could potentially affect my investment.

SophieJones Sun Dec 15 2024 | 7 answers 1202

I'm interested in understanding DeFi lending collateral. Could you explain what it is and how it works in the context of decentralized finance?

emma_grayson_journalist Sun Dec 15 2024 | 6 answers 1038

I'm interested in starting DeFi lending but I'm not sure how to begin. I want to understand the steps and considerations needed to get started with decentralized finance lending.