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.
Related terms
ServiceabilityConsumer Data Right (CDR)Credit decisioningLooking for something else? Browse the fulllending technology glossary.
Looking for something else? Browse the fulllending technology glossary.
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