Which "C" of the 5 C's of credit would consider the real estate, inventory, equipment or other assets that the borrower can pledge as security for a loan?
A) capacity
B) conditions
C) capital
D) collateral

Question

Quizplus · Accepted Answer

Collateral refers to the assets a borrower pledges as security for a loan. The lender can seize these assets if the borrower fails to repay the loan, reducing the lender's risk. Capacity refers to the borrower's ability to repay the loan, conditions refer to the economic and industry conditions the borrower operates in, and capital refers to the borrower's financial position and creditworthiness.

Which "C" of the 5 C's of Credit Would Consider