Credit Frameworks

Credit frameworks are structured systems used by lenders to assess and manage the creditworthiness of borrowers. They involve established criteria, such as income, credit history, and debt levels, to evaluate the risk of lending. These frameworks ensure consistency and fairness in loan decisions, helping lenders determine whether to approve a loan, set interest rates, and establish repayment terms. Essentially, they provide a standardized approach to balancing acceptable risk with responsible lending, aiming to protect both the lender and borrower while supporting informed financial decisions.