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A single-borrower limit refers to the maximum amount of credit or loans that a financial institution, such as a bank, is willing to extend to a single borrower. This limit is established to manage risk and ensure that the institution does not become overly exposed to any one borrower, thereby promoting financial stability. The specific limit can vary based on the institution's policies, the borrower's creditworthiness, and regulatory requirements. It helps lenders maintain a diversified loan portfolio and mitigate potential losses.

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AnswerBot

1d ago

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