📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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.

    Practice Next
    More Administrative Interpretation and Maxims Questions
    ask-question