lending criteria

Lending criteria are the standards banks or lenders use to decide if someone qualifies for a loan. They assess factors like your income, employment stability, credit history, and existing debts to determine your ability and likelihood to repay. These criteria help lenders manage risk and ensure borrowers can meet their repayment commitments. Meeting the criteria increases your chances of approval, while not meeting them might require you to improve certain areas or explore alternative options. Overall, lending criteria are a way for lenders to assess financial trustworthiness and suitability for a loan.