Glossary entry
Responsible lending
A regulatory requirement to inquire, verify, and assess suitability so borrowers can repay without substantial hardship.
Category
Lending technology
Definition
What responsible lending requires
- Reasonable inquiries about requirements, objectives, and financial situation
- Reasonable verification of information provided
- Suitability assessment and evidence retention
Operational implication
Consistent workflows and audit trails are essential to demonstrate compliance and reduce manual burden across portfolios.
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