What is the aim of qualitative underwriting?

The aim of qualitative underwriting is to assess the borrower's overall creditworthiness. This process goes beyond just looking at quantitative data, such as credit scores and financial statements, by considering qualitative factors that can provide insight into the borrower's character, reliability, and intent. This might include reviewing the borrower's employment history, stability in residency, and even personal interviews. By evaluating these broader aspects, lenders can make more informed decisions regarding the risk associated with granting a loan.

In contrast, the other options focus on specific aspects of lending but do not capture the comprehensive nature of qualitative underwriting. Analyzing loan repayment metrics relates primarily to financial data, calculating an interest rate focuses on the loan's cost rather than the borrower's character, and determining property value is an assessment of the collateral rather than the borrower's financial behavior or intent.