Question
What are the reasons why the banks might not be willing to lend to certain borrowers?
Solution
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.
(iii) The banks might not be willing to lend those entrepreneurs who are going to invest in the business with high risks.
