Why do financial institutions approach some people to take loans?

[Etini]

There are some people who are being offered loans everyday by strong financial institutions. I don't mean online loans. Whereas some people are eagerly looking for those loans but are turned down.

 

[Spider]

They want more business and this is why they are doing this. They will contact almost every one and will choose the one who is competent and willing to take loan.

 

[Etini]

They want more business and this is why they are doing this. They will contact almost every one and will choose the one who is competent and willing to take loan.

They don't contact everyone. They contact the people that they know are able to afford the loan without stress. The difference between I and a popular successful business person is he can walk into any bank and get a loan of 10 million in minutes and it would take them 2 weeks to disburse a 100k to me.

 

[Salt]

I receive calls many times from different financial institutions for loan or for a credit card which I am not interested in but still they keep contacting me.

 

[Iboro]

They don't contact everyone. They contact the people that they know are able to afford the loan without stress. The difference between I and a popular successful business person is he can walk into any bank and get a loan of 10 million in minutes and it would take them 2 weeks to disburse a 100k to me.

That is very true. I remember how I suffered to get a 40k loan until I eventually gave up. But my wealthy friend got twice that amount in 2 days from application.

 

[Salt]

I kept getting so many calls that I have opted for no communication from them as I don't like taking loan but generally they contact those persons who have good credit score

 

[Nomad]

Banks and financial institutions are established in order to lend money and make money by collecting interest on loans. These institutions give marketers and staff a target that they need to meet in order to earn their salary, so these people are under pressure to frequently promote loan facilities., therefore, they start bothering people with loan offers.

 

[Grant]

Because they want you to get one? I mean the whole point is for them to make a sale, and getting you to take out a loan helps them. Because you then have to pay that loan back, sometimes with interest. Which is why they look for people to take out loans. This brings me back to when I was in college. Because I remember we had banks trying to get us to start accounts, and some even wanted to have us take out loans.

 

[Debashis]

Financial institutions approach people to take loans because it allows them to earn interest income and generate profits. By lending money to individuals, financial institutions can also help stimulate economic activity and provide individuals with the funds they need for various purposes, such as buying a house, starting a business, or paying for education.

 

[Good-Person]

Financial institutions approach people to take loans because it allows them to earn interest income and generate profits. By lending money to individuals, financial institutions can also help stimulate economic activity and provide individuals with the funds they need for various purposes, such as buying a house, starting a business, or paying for education.

They definitely approach big businesses so that they could earn interest. However, i think that no wise person would take loans from such kind of institutes that tend to charge a high interest rates. In the end it is never a good thing for the business as paying high interest rates just increases bad debts in the end.

 

[favouranduwish]

Financial institutions approach some people for loans based on various factors like credit history, income stability, and financial behavior. They see these individuals as lower-risk borrowers. On the other hand, those actively seeking loans might face challenges like lower credit scores, making them appear riskier to lenders.