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To determine the creditworthiness of a new borrower, the lender considers the character. The character is reflected in the credit history or the track record for debts repayments. Capacity is also considered which measures of the overall ability of the borrower to repay the loan with measures such as the debt to income ratio. Other considerations would include the stability of the job and the time the borrower has been on that job (Baiden, 2011)….