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Character:

: refers to how a person has handled past debt obligations: From the credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined. ; Capacity:

: refers to how much debt a borrower can comfortably handle. Income streams are analyzed and any legal obligations looked into, which could interfere in repayment. ; Capital:

: refers to current available assets of the borrower, such as real estate , savings or investment that could be used to repay debt if income should be unavailable. CAMEL is a tool sometimes used for assessing credit-worthiness of a borrower. CAMEL refers to: * C: Capital * A: Assets * M: Management * E: Equity * L: Liquidity

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