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WAEC Commerce 1994 Question 46

Question 46

Banking

Which of the following is not considered by banks when granting loans to customers?

  1. A.Character of the customer
  2. B.Amount needed
  3. C.Period of repayment
  4. D.Amount of interest payable
  5. E.Purpose of the loan
Show the answer and explanation

Answer: D (Amount of interest payable)

Explanation

Banks look at the borrower's character, the amount, the purpose and the repayment period; the interest is fixed by the bank, not a test of the borrower.