Underwriting standards

Underwriting standards are the rules and criteria used by lenders, insurers, or financial institutions to assess the risk of granting loans, insurance policies, or other financial products to individuals or businesses. These standards help determine whether an applicant is likely to repay a loan or whether an insurance claim will be made. Factors considered include credit history, income, debt levels, and other relevant financial information. By following these standards, institutions aim to minimize financial risk while ensuring fair access to services for consumers who meet the necessary criteria.