See Also
The 5 Cs of CreditThe 3 C’s of mortgage underwriting | Movement Mortgage Blog3C’s Model (3C analysis business model ) | WACAAbility to Repay: History, Requirements, Exceptionsrefers to how a person has handled past debt obligations: From the credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined.
Capacity:
refers to how much debt a borrower can comfortably handle. Income streams are analyzed and any legal obligations looked into, which could interfere in repayment.
Capital:
refers to current available assets of the borrower, such as real estate, savings or investment that could be used to repay debt if income should be unavailable.
CAMEL is a tool sometimes used for assessing credit-worthiness of a borrower.CAMEL refers to:
- C: Capital
- A: Assets
- M: Management
- E: Equity
- L: Liquidity
Return to the Documents SectionHari Srinivas - hsrinivas@gdrc.org
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