Judgmental method of evaluating a potential borrower's creditworthiness, based on five criteria: character, capacity, capital, collateral, and conditions. The first four deal with a borrower's Ability to Pay whereas the last point refers to general business conditions in the borrower's industry.
Five C's of Credit
| Banking Dictionary: Five C's of Credit |
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 | Capacity (in banking) |
| Character (in banking) |
| Unsecured Loan (in banking) |
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 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Capacity (in banking)
- Character (in banking)
- Unsecured Loan (in banking)
- Ability to Pay (in banking)
