In deciding whether to approve a loan for Grewal Properties, the lender evaluates the company's financial ability to meet its credit obligations and make regular loan payments. Which of the 5 C's of credit does this represent?
A) capital
B) capacity
C) conditions
D) collateral

Question

Quizplus · Accepted Answer

Capacity refers to the borrower's ability to repay the loan, and includes an evaluation of the borrower's financial ability to make regular loan payments.

In Deciding Whether to Approve a Loan for Grewal Properties