question_answer

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

Answer:

(i) Banks do not wish to give loans to the poor as they have no collateral.

Bank loans require proper documents and collateral, as security against loans.

(ii) The borrowers who have not paid any previous loans are defaulters, and banks might not be willing to lend them again.

(iii) The banks might not be willing to lend those entrepreneurs who are going to invest in the business with high risks.