The most subjective and also significant segment of the 5 Cs of credit for giving final approval is
A) capacity.
B) collateral.
C) character.
D) conditions.

Question

Quizplus · Accepted Answer

Character refers to the borrower's credit history, reputation, and integrity. Unlike capacity (ability to repay), collateral (assets to be pledged), and conditions (external factors affecting the loan), character is a subjective factor that influences the lender's decision-making process. It provides insight into the borrower's level of responsibility in meeting financial obligations, which is critical for final approval.

The Most Subjective and Also Significant Segment of the 5