qualifying ratios definition

qualifying ratios

Measures used in lending and credit decisions to assess the loan applicant's ability to meet current and (if the loan is approved) future debt obligations. Typically, these ratios (such as back end ratio and front end ratio) compare the amount of loan repayment installments with the applicant's gross and net cash flows, and total and liquid assets.

qualifying ratios is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

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