Lenders often look the 5 C's of credit as a way to assess the willingness and ability of a borrower to repay a loan. Those 5 C's are all of the following Except:
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A. B. C. D.C
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The 5 C's of credit are a set of criteria used by lenders to evaluate the creditworthiness of a potential borrower. They are as follows:
Character: This refers to the borrower's reputation and history of paying debts. It includes factors such as the borrower's credit history, employment history, and references from other lenders.
Capacity: This refers to the borrower's ability to repay the loan, based on their income, assets, and other financial obligations.
Capital: This refers to the borrower's net worth, or the value of their assets minus their liabilities.
Collateral: This refers to any assets that the borrower pledges as security for the loan. Collateral can help reduce the lender's risk, as it provides a source of repayment if the borrower defaults on the loan.
Conditions: This refers to the overall economic and market conditions that may affect the borrower's ability to repay the loan. For example, if the borrower operates in a volatile industry or if there is a recession, the lender may view the loan as riskier.
So to answer the question, the correct answer is C. Credit term, as this is not typically considered one of the 5 C's of credit. However, it's worth noting that some sources may include a slightly different set of criteria, or use slightly different terminology for the 5 C's. Nonetheless, the basic idea is the same: lenders want to assess the borrower's likelihood of repaying the loan, and use various factors to evaluate this.