Borrowerbased
Borrowerbased is a term used in finance to describe loan products or services that are designed with the borrower's individual circumstances and repayment capacity as the primary consideration. This approach contrasts with lender-centric models that may prioritize the lender's risk mitigation or profit maximization above all else.
The core idea behind borrowerbased lending is to ensure that loans are affordable and sustainable for the
Features of borrowerbased lending may include flexible repayment terms, interest rates that are aligned with the
This approach is particularly relevant in consumer lending, microfinance, and for individuals with less established credit