When banks lend money to customers, banks, of course, expect their money back. Therefore, to minimize risk (the money is not returned, for example), in providing bank loans should consider a few things associated with good faith (Willingness to pay) and repayment ability (ability to pay) for customers to pay back the loan with interest. These consist of Character (personality), Capacity (capacity), Capital (capital), Colateral (collateral), and Condition of Economy (economic situation), or often referred to as the 5C (five C).
Character, nature, customs debtor (party who owes) is very influential in the provision of credit. Creditors (the creditor) to examine whether the debtor entered into the Register of the disgraceful (DOT) or not. For that creditors can also be researching his bio and information from their business environment. Information from the business environment can be obtained from the supplier and customer of the debtor. Moreover, it can also be obtained from Central Bank information, but can not be obtained easily by the general public, because such information can only be accessed by employees of the Bank of credit by using the password and the computer connected on-line with the central bank.
Capacity is related to the ability of a debtor to repay the loans. To measure it, the creditor may examine the debtor’s ability in management, finance, marketing, and others.
By looking at the amount of capital owned by the debtor or to see how much capital invested in its business debtors, creditors can assess the debtor’s capital. The more capital invested, the debtor would be viewed more seriously in business.
Possibly Related Articles:
- 3 basic principles you need to grasp in making the permanence family
Financial planning early on required each family. This holds true both for young couples as well as married couples for more than 20 years. Make a good plan will help to use funds wisely according to ... - Financial Problems
Financial problems are commonly experienced by young families, especially in the first years of living the life Not to mention the little one soon comes in the midst of you and your partner. Is it tru... - Mature Consideration Before Deciding to Debt
good debt or bad debt, they remain a burden to be paid, then any person should not be too easy for the debt. Well within the framework of Mother "brake" husband owes habit, Mother can help by inviting... - Know the Reason for Rejection of Credit Application
At the time of submission of personal loan, the most annoying is when we again need and more - awaited the results, it turns out that comes even SMS or rejection letters ..... wah ...!! plan would b... - Making Financial Planning
Previously I have discussed that making financial planning that's actually easy if you attempt to try and run it. As for which is the basis of all planning is the habit of doing the recording.
Next... - Healthy Financial Habits
The temptation to consumerist life. But it's not that easy you purchase various items for credit. Grow a garden healthy financial habits starts from simple, as it does not have debts of consumerist.
... - Productive Assets and Financial Innovation
Productive assets
Another example of financial innovation is to have as many assets consumptive than productive assets. Have you seen the merchant who lived in a Shop house, where the bottom floor is... - Benefits you can get when you have an insurance account
Have a guarantee of tomorrow for themselves and families in preparing for the unexpected things is the right solution for your future and your family can be well planned. But unfortunately prepare for... - Rerence Program Credit Card
For reference program credit card:
1. Akki Checking.
2. SID Negative.
3. Income Adequacy applicant to meet debt obligations and needs.
4. Age period of less than credit card required.
5. Use cr... - How to Know the Credit Card Billing
To find out the credit card bill is very simple, because the current credit card issuing bank provides a variety of services - range: bill via post, via Currier, Internet banking, SMS or telpone ser...
Credit Terms Corporation