What term describes the practice of showing potential borrowers all available loan options?

The practice of showing potential borrowers all available loan options is best described as loan transparency. This term emphasizes the clear and open communication of loan products and terms available to borrowers, which is essential for making informed financial decisions.

Loan transparency not only helps borrowers understand their choices but also supports fair lending practices by ensuring that consumers can evaluate all options rather than being directed towards specific loans. This promotes competition among lenders and encourages borrowers to seek the terms that best fit their financial situations.

The other terms provided do not accurately convey this practice. Credit steering refers to directing borrowers toward a specific loan option, often for the benefit of the lender rather than the borrower. Loan categorization involves sorting loans into groups based on certain characteristics, which does not inherently include all options being presented. Stock financing typically relates to funding through equity rather than loans, making it irrelevant in this context. Therefore, loan transparency is the most appropriate term that captures the essence of providing potential borrowers with comprehensive information about all available loan options.