Lending practices refer to the methods and procedures used by financial institutions, such as banks and credit unions, to provide loans to borrowers. This encompasses the assessment and evaluation of creditworthiness, the terms and conditions of loans, interest rates, repayment schedules, and the overall approach to lending. Good lending practices involve transparency, fairness, and ethical considerations in the lending process, ensuring that borrowers receive adequate information and support throughout their borrowing experience. Effective lending practices aim to minimize risk for the lender while providing accessible financing options for borrowers, fostering financial inclusion and responsible borrowing.
Understanding the Controversy Surrounding Fintech Lending In recent years, fintech lenders have come under fire for their high-interest rates, especially those serving subprime customers. Critics argue that these rates often…