Question

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

Answer 1

Here is your answer

A number of borrowers have no collateral to pledge againser

articularly small farmers requiring crop loans .A collateral is an asset that the borrower owns and pled guarantee to the lender until the loan is repaid.

Repayment of such a loan is crucially dependent on the

income from selling the crop. Since there is a risk involved case the crop yield is inadequate for any reason banks are

willing to lend to such borrowers who cannot pledge collateral, which can be sold to recover the lo

I hope my answer help you .

vinay7860

Answer 2

Due to lack of collateral.

No security provided to banks.