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    • Question

      How is "credit scoring" defined under the Credit

      Information Companies (Regulation) Act, 2005?
      A A system for determining the interest rates for loans and advances Correct Answer Incorrect Answer
      B A system for assessing the financial health of a credit institution Correct Answer Incorrect Answer
      C A system for determining the amount of credit facility available to a borrower Correct Answer Incorrect Answer
      D A system for managing the assets and liabilities of a credit institution Correct Answer Incorrect Answer
      E A system for evaluating the risk of a borrower defaulting on their loan or advances Correct Answer Incorrect Answer

      Solution

      Section 2. Definitions (g) “credit scoring” means a system which enables a credit institution to assess the credit worthiness and capacity of a borrower to repay his loan and advances and discharge his other obligations in respect of credit facility availed or to be availed by him.

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