Thanks! This makes much more sense, I assume this approach on the calculation is applicable everywhere.
Thanks
We tend to look at the borrower's perspective only or the lender's perspective only and we should look at both for a fair and balanced perspective
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do you mean that credit history of the lender should be on the table in this type of situation?
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The borrower is asking and trying to persuade the lender to lend him money
The lender has to ascertain the credit risk of a borrower: high, low, medium, etc
Most lenders have certain criteria before they even consider a loan application
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it's basically on us to make the due diligence and check before going out to the first entity to ask.
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A borrower can seek pre-approval and the lender will know right away if the borrower meets their minimum requirements
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