what are the reasons why the banks might not be willing to lend to certain borrowers?
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ᴛʜᴇ ʙᴀɴᴋs ᴍɪɢʜᴛ ɴᴏᴛ ʙᴇ ᴡɪʟʟɪɴɢ ᴛᴏ ʟᴇɴᴅ ᴄᴇʀᴛᴀɪɴ ʙᴏʀʀᴏᴡᴇʀs ғᴏʀ ᴛʜᴇ ғᴏʟʟᴏᴡɪɴɢ ʀᴇᴀsᴏɴs: (ɪ) ʙᴀɴᴋs ʀᴇǫᴜɪʀᴇ ᴘʀᴏᴘᴇʀ ᴅᴏᴄᴜᴍᴇɴᴛs ᴀɴᴅ ᴄᴏʟʟᴀᴛᴇʀᴀʟ ᴀs sᴇᴄᴜʀɪᴛʏ ᴀɢᴀɪɴsᴛ ʟᴏᴀɴs. sᴏᴍᴇ ᴘᴇʀsᴏɴs ғᴀɪʟ ᴛᴏ ᴍᴇᴇᴛ ᴛʜᴇsᴇ ʀᴇǫᴜɪʀᴇᴍᴇɴᴛs. (ɪɪ) ᴛʜᴇ ʙᴏʀʀᴏᴡᴇʀs ᴡʜᴏ ʜᴀᴠᴇ ɴᴏᴛ ʀᴇᴘᴀɪᴅ ᴘʀᴇᴠɪᴏᴜs ʟᴏᴀɴs, ᴛʜᴇ ʙᴀɴᴋs ᴍɪɢʜᴛ ɴᴏᴛ ʙᴇ ᴡɪʟʟɪɴɢ ᴛᴏ ʟᴇɴᴅ ᴛʜᴇᴍ ғᴜʀᴛʜᴇʀ.
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The banks might not be willing to lend certain borrowers for the following reasons: (i) Banks require proper documents and collateral as security against loans. Some persons fail to meet these requirements. (ii) The borrowers who have not repaid previous loans, the banks might not be willing to lend them further.
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