On what basis will you give loan to a person

Question

Accepted Answer

Loans are given based on the borrower's creditworthiness, income stability, and collateral.

Creditworthiness: Assess the borrower's credit history, credit score, and repayment behavior.
Income stability: Evaluate the borrower's employment history, income level, and ability to repay the loan.
Collateral: Determine if the borrower has any assets that can be used as collateral to secure the loan.
Debt-to-income ratio: Analyze the borrower's debt obligations in relation to their income.
Purpose of the loan: Consider the intended use of the loan and its potential impact on the borrower's financial situation.
Loan amount and term: Assess the appropriate loan amount and repayment term based on the borrower's financial capacity.
Risk assessment: Evaluate the overall risk associated with lending to the individual.

Accepted Answer

Based on C-Bill score, documents and securities that person has against which the person can pay the loan