Economy, asked by tisu6924, 9 months ago

In the 5Cs of credit, what does capacity measure

Answers

Answered by Jathinbharadwaj

Explanation:

The Five Cs of Credit: Capacity

The Five Cs of Credit: CapacityCapacity measures the borrower's ability to repay a loan by comparing income against recurring debts and assessing the borrower's debt-to-income (DTI) ratio. ... The lower an applicant's DTI, the better the chance of qualifying for a new loan.

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