Five C's of Credit
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Five C's of Credit
Capacity Capital Collateral Conditions Character
Collateral
If they default on the loan, what can the bank take as repayment
Character
What is their reputation. Have they paid back loans before? Their willingness to pay back debts
Capacity
Evaluates the borrower's ability to pay back debt
Capital
Financial assets or the financial value of assets of the borrower
Conditions
The terms of the loan set by the bank
