Question

There are many circumstances in which the principles of the 5 Cs of credit can be applied.

• Utilizing the company that you work for or a company that you are familiar with, name one of the 5 Cs of credit, and discuss how it would come into play in the workplace.
• How can you use this C in situations that occur in your personal life?

Answer 1

ANSWER:-

The 5 Cs of credit are Character, Capacity, Capital, Collateral, Conditions.

Company chosen: Infosys

C chosen out of 5Cs: Character

Character refers to the track record of the borrower that the lender assesses while lending them some credit. The borrowing and repayment history of the borrower tells about the character of the lender, and can help the lender guess whether the loan will be repaid in time or not. Similarly, character is an important element at workplaces whille hiring employees, and the Human Resources department conducts a thorough investigation about the background of the employee and his track record with previous organisation before making the final hiring decision.

Character also applies to personal life, as a person's character is the sum total of how he has behaved or reacted to various situations in the past and how one expects his to behave in the future. Hence, character in the statement of one's conduct in the past, present and future, when talking in context of personal life.