InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
What are the reason why the bank might not be willing to lend to certian borrowers |
|
Answer» Bank is one of the institutions which is known for its generation of loans. These loans MAY be long term, short term or middle term. Whether a certain bank is willing to give a loan to a certain ENTITY, depends on the sole decision making of that bank. For example: Sometimes a bank might not agree to give a loan to a certain borrower, this depends on the following factors 1- The interest is too high and the borrowers, previous records may show that he wont be able to pay interest on time 2- This borrower is previously a known defaulter 3- This borrower, for INSTANCE, his new business proposal lacks potential to gain maximum profits, under the digression of the bank people. 4- The borrower's guarantor isn't well known, or is shady, or lacks the goodwill 5- The business in which the bank is supposed to give loan, lacks market VALUE or good will. Example: They have been bad mouthed. REPUTATION is in lacking. |
|