borrowing capacity

**Borrowing Capacity**

Borrowing capacity refers to the maximum amount of money an individual or business is eligible to borrow from a lender, based on various financial factors. This includes income, credit history, existing debts, and overall financial stability. Understanding your borrowing capacity is essential for making informed decisions about loans, mortgages, and other forms of credit, helping to ensure that you borrow within your means and manage debt responsibly.