Banks might not be willing to lend to certain borrowers'. Why is it so? What can be done to solve this issue?
Answers
Banks might not be willing to lend to certain borrowers who are of poor section bection there is no collateral which can be taken form them.
the poor section took money and if not able to give the money then bank would me in problem.
to solve the problem they can make self help groups which help themselves to return the money.
small parts of banks can be made in the villages which enable the poor people to take loan with low interest rates and collateral
MARK AS BRAINLIST
Banks may not be willing to lend to certain borrowers because such borrowers may not have been found to be credit worthy or the purpose of taking the loan might not be viable enough to support repayment of the loan.
Banks normally do a background check on the borrower or it might conduct a feasibility study on the project or requirement for taking the loan. This is to ensure that the borrower is credit worthy or the project for which a loan is taken, generates enough finances for repayment of the loan.
Borrowers will have to prove their credit worthiness through prompt payment of all their dues (past and present) and also by providing a positive and doable feasibility report on the project that they are embarking upon.