How you justify credit of customer

Question

Accepted Answer

Credit of a customer can be justified by evaluating their credit history, financial stability, and repayment capacity.

Evaluate the customer's credit history, including their payment patterns, outstanding debts, and any previous defaults.
Assess the customer's financial stability by analyzing their income, assets, and liabilities.
Consider the customer's repayment capacity by reviewing their cash flow, debt-to-income ratio, and ability to meet financial obligations.
Verify the customer's creditworthiness through credit checks, references, and financial statements.
Take into account any collateral or guarantees provided by the customer to secure the credit.
Use credit scoring models or risk assessment tools to quantify the customer's creditworthiness.
Consider industry-specific factors or market conditions that may impact the customer's ability to repay.
Balance the potential risk with the potential benefits of extending credit to the customer.
Regularly monitor and review the customer's credit performance to ensure ongoing credit justification.

Accepted Answer

I justify loan credit eligibility with the help of customer's other loan repayment summery, customer's property value, customer financial report just like itr sale  gst sale and computation.  And his net profit after expenses and family liabilities.

Accepted Answer

By credit score and repayment history

Accepted Answer

Income and expenditure

Accepted Answer

What is the income of the customer What is his business, how much income does he have, is he filling the ITR or not, what is his CIBIL score etc

Accepted Answer

A consumer credit system allows consumers to borrow money or incur debt, and to defer repayment of that money over time. Having credit enables consumers to buy goods or assets without having to pay for them in cash at the time of purchase.

How you justify credit of customer

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