Monday, June 11, 2007

Some Factors Bank Managers Consider Before Granting Loans

There are many factors which may influence the granting of loans by most Bank Managers and a number of them are outlined below;
1. The type of Account The Customer operates: Although non-account owners get loans, loans are normally given to current account owners more than those who operate savings accounts.
2. The Amount Involved: If it is a large sum of loan, the Bank Manager will consider whether if such an amount is removed, it will not affect the financial standing of the bank.
3.The Past Financial Dealings of the Customer with the Bank: one with sound past financial dealings with a bank has a higher chance of getting a loan and vice versa.
4. The Purpose for which the loan will be used: financially yielding projects are considered more buy bank managers in order to make sure that the loan will be used for projects that will yield profit so that it will enable the borrower to repay the loan.
5.The Collateral Security Offered:These collateral securities which are fixed assets must be the things the bank can sell easily and more than the value of the loan given.
6. The Period of Repayment: The period of re-payment of such loan is very important because, the Bank would not want its loan to be tied down for a very long time in spite of the fact that it changes interest on the loan.
7. The Customers Referee: The referee must be one 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 of The Customer: The person's earnings vis-a-vis the amount to be given out as loan are some of the determining factors in granting and issuing loans.
9. The Sources of Re-payment: The Bank Managers will also like 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 fulfill all the "Conditions" but if government policy on lending is credit squeeze, the Bank will not grant the Loan and vice versa.

5 Comments:

Blogger It is me! said...

Very nice blog but you can visit this blog
Loans and Banking
it is very nice blog that gives you advices for credits, loans and banking

June 24, 2007 at 2:31 PM  
Blogger Jennie04 said...

A grant loan gets a non-performing resource when a house owner prevents from making their mortgage repayments. As a result, the foreclosed process is created to fix the situation while earning the lowest amount of losses


Payday Loan

April 3, 2012 at 10:14 PM  
Blogger 12monthspayday said...

This is very useful information.I am very grateful to this blog for providing helpful information.
Long Term Loans UK

September 26, 2013 at 7:18 AM  
Blogger paydayeasycashadvanceloans said...

For vehicles also we get loan in the payday,from that also we get so many different loans based on that vesicles.

Cash Advance Payday Loans

October 3, 2013 at 9:59 AM  
Blogger Crxzone 2014 said...

Student loan financial loans aren't the only kinds of financial debt annoying students. Many find themselves stuck with medical financial debt, financial loans, car financial loans and other kinds of financial debt not supported by the administration. These other debts can be released in bankruptcy and take off a lot of financial pressure.

Buy Bitcoin

November 9, 2014 at 10:35 PM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home