Question

.Which obstacle restricts certain borrowers to get a loan from the banks? State with example​

Answer 1

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

Answer 2

There are two obstacles that restrict certain borrowers to get a loan from the banks which are unavailability of proper documents and past history of the borrower.

• To get a loan from the bank, the borrower has to produce certain certificates and proper documents in absence of which the bank will refuse to give a loan to the person because they cannot trust a person without any documents.
• Secondly if the person has a previous record of not paying back the loan then the bank will definitely refuse to give a loan to these people.
• For example: If a person took a loan from the same bank in previous year and did not pay the amount bank yet, then he will not get the loan, the same will happen if the person doesn't has proper ID proofs.