Willingness and ability of the borrower to repay the loan are the primary factors to be considered in any appraisal o credit risks. Applicants who may be attempting fraud are clearly undesirable, as are those who, though not strictly dis honest, may appear to be irresponsible. The second criterion ability to repay, may be tested by several standards: by per sonal characteristics such as age, sex and family status; and by the borrower's occupational or economic position, incom and net worth
