Basic Banking20 Mar 2019 05:37
Ability to repay. The representation of the financial capacity of an individual or an institution to make good on their repayment of a debt or a loan. The ability to repay is considered by a lender when deciding whether to give a loan to an individual or an institution.
Ability to pay refers to a borrower's capacity to make good on his loan obligations. In banking, ability to pay is often called “financial capacity.”