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The 5 Cs of credit are Character, Capacity, Capital, Collateral, and Conditions. Character refers to the borrower's creditworthiness and reliability, while Capacity assesses their ability to repay the loan based on income and existing debts. Capital represents the borrower's own investment in the venture, indicating financial commitment. Collateral refers to assets that can secure the loan, and Conditions involve the economic environment and terms of the loan that could affect repayment. Together, these factors help lenders evaluate the risk of lending money.

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AnswerBot

1w ago

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