Question

What are the reasons why the banks might not be willing to lend to certain borrowers?

Answer 1

Answer:

Reasons due to which the banks might not be willing to lend to certain borrowers

1. Due to inadequate income some borrowers are not in the position of paying the

loan.

2. Certain borrowers do not have any assets or collateral to deposit in the bank as

security.

3. Some people or borrowers already owe large amounts of money to creditors, so

bank don’t want to give them further loans.

Explanation:

Answer 2

The banks might not be willing to lend to certain borrowers because of their bad credit scores or past defaults.

Explanation:

1. The major function of banks includes lending money to the potential borrowers at a certain rate of interest over the principal amount.
2. However, in certain situations bank might not be willing to lend to some borrowers because of their past defaults or bad credit score.
3. Moreover, if a person is a legal offender or prohibited by the law from borrowing the services of the bank, the bank might blacklist such people and not lend money to them.