why is getting a loan in bank is so hard?

[funmi]

If you want to start a business or an investment and you need support to make your capital big enough, the first thing many people will think is to go to the bank to apply for a loan.
But its a pity in Nigeria, before you can apply and be giving a loan you will almost pass through the eye of the needle that is if you were later given after all the conditions you will be giving and after you must have accepted their terms and conditions and providing all the requirement asked of you.
Eventually, I came to the conclusion that an ordinary or an average person can not be given a loan in our Nigeria banks. It is as hard as rock. More so, what I think can send people away or prevent people from taking loans from the banks is their high interest rate. Men, their interest rate too so discouraging.
Why is it this hard to apply for a loan in our Nigeria banks after all that is where we save and keep our income.
Thanks.

 

[Chibson]

Probably banks do not give loan to everyone. Before a bank will give you a loan you must have saved some certain amount of money with them for a stated period of time and he must also be reputable. if you want to get a loan from Bank then you must also have a very tangible collateral such as land and property.

 

[Good luck]

Bank is a financial organization that deals with Money,both local and foreign.Getting a bank loan require a paper work.This paper work will take time to manifest and most our people cannot wait for that and after even waiting,you will be asked to provide atleast two guarantees before you will get the loan with high rate of interest.

 

[Bookwormlux]

Banks have their terms and conditions, and they would always make sure they are not giving out loans t people who would take time to repay, or not even repay. They only give out loans to people who have consistently use them to do high rate transactions.

 

[Abigael]

It is also so hard in my country to take bank loans. They really do a deep checkup on your credit history, reputation and ability to pay back the loan. Only those who have a high anount of salary or a really stable business are able to secure the loans easily. But I am glad that the interest rates for bank loans are way better here than other loan lending institutions.

 

[A K Rao]

There is an old adage in India, which means that the Banks give loans to the people those who don't want it. That is so true as the bank wants collateral guarantee against the loan. If a person is having collateral asset or property as a guarantee, why at the first place he goes for a loan? People who need a home don't get it because they are no guarantee for them and Bank is a business house which thrives on the interest. So at the end of the day Banks lend the big companies which are already rich to help them out to expand the business. Thus, for a common man it is very difficult to get the loan by the man without a guarantee.

 

[arunima25]

There is an old adage in India, which means that the Banks give loans to the people those who don't want it. That is so true as the bank wants collateral guarantee against the loan. If a person is having collateral asset or property as a guarantee, why at the first place he goes for a loan? People who need a home don't get it because they are no guarantee for them and Bank is a business house which thrives on the interest. So at the end of the day Banks lend the big companies which are already rich to help them out to expand the business. Thus, for a common man it is very difficult to get the loan by the man without a guarantee.

I agree to some extent there. But then that is the right way to do it. Banks can not go for a risk. Despite all the precautions that a bank takes, we hear stories of loan defaulters and scammers each day.
For people who are too poor and do not qualify for a loan requirement, there are always other welfare programs to benefit them. They can go for that. For example, we have Mudra Yojna here in India to support poor people to establish their small-scale businesses and many have benefitted from it. Those who can not pay back loans should not take such a big step to take a big amount. They can go in small steps, starting their businesses small and then expanding it.

 

[Sherman198]

Getting a loan in the bank would be definitely difficult because banks are running a business too and the notion of every business entity is to make profit.

So that's why if you want to get a loan in a bank, you will be asked for a collateral that is over worth the value of the loan you are requesting for. So they will have a leverage in case you can't be able to pay off the loan you borrowed.
I think this is not the criteria for only banks, it's applicable to all lending firms.

 

[MoneyMaker1]

It's becoming increasingly difficult to qualify for a personal loan through your bank or credit union, especially if you want a larger amount, but it is possible to get a reasonable loan if you meet the requirements.

 

[arunima25]

Banks are financial institutions and they have to run a profitable business. They are an important part of any country's economy and they have to follow all guidelines and laws. They can not risk giving loans to people who would later turn out to be loan defaulters. This would jeopardize the future of the bank. So all necessary precautions and a thorough procedure have to be in place.

 

[Alexandoy]

Even in the Philippines an ordinary employee can have a hard time in getting a loan from the bank especially a housing loan. Before I became a bank officer I was just like a fence-sitter when it comes to housing because we were renting. My salary was okay but they need more assurance that I would be able to pay back the loan. But if you have a recommendation then the processing of the application would go smoothly.

 

[Augusta]

The first thing is people dishonesty. You can't believe the number of people that would take loans from these Banks and wouldn't be able to pay back. Even the so-called rich people still owes the bank and come to pay after a call out. So if you don't have a solid Collateral no bank will remit money to you