What does ability to repay mean?

ability to repay meaning in Law Dictionary

n individuals power to repay a debt. This term in addition reaches borrowing establishments. This is certainly an integral aspect utilized in the lending choice.

ability to repay meaning in Business Dictionary

The representation associated with monetary capacity of an individual or an institution in order to make great to their payment of a debt or financing. The capacity to repay is considered by a lender whenever determining whether to give a loan to an individual or an institution.