Learn About the 3C’s of Loan Underwriting Process

Lenders, before granting the loan, analyze the credit reports thoroughly. The 3C’s of the loan underwriting process is essential to prevent fraudulent activities by borrowers. The first one is “Character” - it’s a qualitative parameter that checks the borrower’s responsibility towards payments by analyzing previous records. Another is “Capacity,” which measures income against debt. The last one is “Collateral,” which is used as security. The authenticity & amount of collateral is correctly checked.