Which term refers to the process of investigating a borrower’s creditworthiness?

The term that refers to the process of investigating a borrower's creditworthiness is Credit Analysis. This process involves evaluating various factors related to the borrower’s financial history, including credit scores, income, debt levels, and repayment history. Credit Analysis aims to determine the likelihood that the borrower will be able to repay the loan, which is crucial for lenders to assess the risk associated with lending money.

Effective credit analysis helps lenders make informed decisions about extending credit and setting appropriate terms for loans, such as interest rates and loan amounts. Understanding a borrower's creditworthiness is vital for maintaining the financial health of lending institutions and minimizing default risks.