Factors Considered When Giving Out a Loan
- Availability of acceptable collateral security (what the bank can sell if the loan isn’t repaid).
- The duration of the loan.
- The purpose of the loan.
- The creditworthiness of the borrower.
- The borrower’s age (must not be a minor, under 18).
- The bank’s own lending policy and the central bank’s policy on money supply.
- The source of income the borrower will use to repay the loan.
- The provision of a referee, who would repay the loan if the borrower defaults.
Growth of Financial Institutions in Cameroon
- Increased income levels, encouraging people to save excess funds in banks.
- Falling interest rates due to competition among banks.
- Increased business activity, needing more financial services like loans and debt payments.
- Improved technology, such as telebanking and mobile banking.
- Increased advertisement, raising public awareness of financial institutions’ benefits.
- A growing number of professional bankers.
- Political stability, attracting investors including financial ones.
- Population growth.
