Final answer:
Before granting a loan, a bank considers the borrower's financial information, including income sources, and conducts a credit check to assess creditworthiness. Additional sources of income can be taken into account when assessing the applicant's ability to repay the loan.
Step-by-step explanation:
In the financial capital market, before a bank makes a loan, it requires a prospective borrower to fill out forms regarding income sources. Additionally, the bank conducts a credit check on the individual's past borrowing. They may also ask the applicant if they have any additional income they would like considered.
For example, if the borrower has a part-time job or receives alimony, these additional sources of income could be taken into account when assessing their creditworthiness.
It is important for a bank to gather this information to determine if the applicant has the ability to repay the loan and to mitigate the risk of default.