There are many factors that may affect lending by most of the Bank's Managers and a number of them are described below;
1. Account Type Client Operates: Although account owners do not take credit, loans are usually given to current account holders more than those who make savings accounts.
2. Amount Included: If the amount of the loan is high, the bank manager will consider whether such amount will be removed, this will not affect the bank's financial standing.
3. Bank's past financial arrangements with the Bank: one with sound financial relationships with a bank has a higher chance of getting a loan and vice versa.
4. Purpose of the loan: Financially-funded financial projects are considered as more buyers of bank managers to ensure that the loan will be used for projects that will yield profit in order to enable the borrower to repay the loan.
5. Collateral Security Insurance: These collateral securities that are fixed assets should be the things the bank can sell easily and more than the value of the loan granted.
6. Repayment Period: The repayment period of such a loan is very important because the Bank would not want its credit to be tied up for a very long time, despite the fact that it changes interest on the loan.
7. Consumer Arbitrator: The arbitrator must be the one who is well-known in the bank and who will guarantee that if the borrower does not pay or becomes unable to pay, he will pay the loan.
8. Customer Profit Power: The person's income against the amount to be credited is some of the determining factors in granting and lending.
9. Refunds: Bank Managers would also like to know the potential sources that the client intends to borrow from the loan repayment.
10. Current Government Policy on Banking Credit: A Customer may fulfill all "Terms", but if government policy on lending is a credit tightening, the Bank will not issue Loans and vice versa.
Source by Eze Ezenwa