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LuckyWell [14K]
2 years ago
11

When considering loan risk, which two items will lenders consider in equal measure?

Social Studies
1 answer:
Archy [21]2 years ago
3 0

When lenders are considering loan risk, two items that they will consider in equal measure are:

  • borrower's ability to repay.
  • underlying collateral value.

<h3>What is considered when looking at loan risk?</h3><h3 />

When a lender is looking at loan risk, they will consider the capacity of the borrower to be able to pay them back the loan.

They will also look at the value of the collateral that is underlying the loan to see if this value can cover the loan amount if there is a default.

Find out more on loan risk considerations at brainly.com/question/9636559

#SPJ1

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