New Delhi, Feb. 6 -- Whenever an individual applies for a credit product like a loan or a credit card, the bank evaluates whether they can approve or reject the application. Among the various eligibility criteria, an important one is to assess whether the individual will repay the credit extended. It is done by evaluating the individual's credit worthiness. In this article, we will understand what credit worthiness is, how banks evaluate it, and its role in an individual's credit score and personal loan applications.

When an individual applies for a loan like a personal loan, the bank needs to do a financial feasibility. The bank needs to assess whether it should approve the loan application, what the loan amount is, whether the borrower...