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The process by which a lender decides whether a potential debtor is creditworthy and should receive a loan.

Underwriting (Wikipedia)

Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee. An underwriting arrangement may be created in a number of situations including insurance, issues of security in a public offering, and bank lending, among others. The person or institution that agrees to sell a minimum number of securities of the company for commission is called the underwriter.

Underwriting (Wiktionary)

English

Verb

underwriting

  1. present participle of underwrite

Noun

underwriting (plural underwritings)

  1. The act of something being underwritten
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