• 5 credit Cs are used to convey the creditworthiness of potential borrowers, starting with the nature of the applicant, which is their credit history.
  • Potential is the ratio of the applicant’s debt to income.
  • Capital is the amount of money that the applicant has.
  • Collateral is an asset that can support or act as collateral for a loan.
  • The conditions are the purpose of the loan, the amount involved and the prevailing interest rates.