loan-underwriting

Vocabulary Word

Definition

Loan-underwriting is a process used by a lender to decide if you are a good person to lend money to. It is based on your credit history, income, and other things.

Examples in Different Contexts

In commercial lending, 'loan-underwriting' determines the terms of business loans. A commercial lender might state, 'Our loan-underwriting process takes into account your business's revenue, market position, and growth projections.'

Practice Scenarios

Finance

Scenario:

We need to update our risk assessment algorithms to account for the changes in economic conditions.

Response:

Indeed, our loan-underwriting practices should adapt to reflect these changes. This might help reduce future risks.

Banking

Scenario:

We have a new loan applicant who has a stable job but their credit score is abysmal. The decision is a bit tricky.

Response:

In that case, I think loan-underwriting would help us better understand their situation and make an informed decision.