New Enroll in our GIC Finance Online Course Here!

    Register

    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