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Some Aspects Bank Managers Look at Just before Granting Loans
There are many things which may well influence the granting of loans by most Bank Managers plus a
number of them are outlined below;
1. The kind of Account The Consumer operates: Although non-account owners get loans, loans are
typically offered to existing account owners greater than those who operate savings accounts.
2. The Amount Involved: If it truly is a sizable sum of loan, the Bank Manager will consider regardless
of whether if such an amount is removed, it can not affect the monetary standing on the bank.
3.The Past Monetary Dealings in the Client with the Bank: one particular with sound previous
economic dealings with a bank features a higher chance of getting a loan and vice versa.
4. The Purpose for which the loan might be made use of: financially yielding projects are viewed as
much more invest in bank managers in order to ensure that that the loan will probably be made use
of for projects that can yield profit so that it can allow the borrower to repay the loan.
5.The Collateral Safety Supplied:These collateral securities which are fixed assets must be the factors
the bank can sell conveniently and more than the value of the loan given.
6. The Period of Repayment: The period of re-payment of such loan is very vital since, the Bank
wouldn't want its loan to become tied down to get a really extended time in spite of the reality that
it alterations interest on the loan.
7. The Customers Referee: The referee should be a single who is well known to the bank and who
will guarantee that in case the borrower defaults or becomes insolvent, that he will repay the loan.
8. The Earning Power in the Client: The person's earnings vis-a-vis the amount to become given out
as loan are a number of the determining aspects in granting and issuing loans.
9. The Sources of Re-payment: The Bank Managers may also prefer to know the possible sources the
customer intending to borrow loans has for repaying the loan.
10. The Present Government Policy on Bank Lending: A Customer may possibly fulfill all the
"Conditions" but if government policy on lending is credit squeeze, the Bank is not going to grant the
Loan and vice versa.
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