There are a lot of people who have a huge personal debt by using credit cards or loans that they may be unable to repay, therefore it should be more difficult for individuals to borrow large amounts of money. I personally agree that it cannot be easy for people to be granted a great number of personal loans, since if they are able to get the credit easily, they will spend it unwisely such as for over consumptions or even illegal purposes such as gambling, resulting them to grow their debts more than they can afford to pay, and ends up in a bad debt situation.
As a credit analyst, I have seen a lot of people’s credit history reports that is made by the state authorities, and most of the non-performing loan debtor were the ones that has an online credit facilities, which people can apply easily through the internet or an application that is owned by the loan company. Since individuals are able to get their hands on the money without effort, since they received from a loan that gets approved easily, they have the tendency to spend it unwisely.
For example, 80% of people who got their money from an online loan facility spent it on online gambling, where most of them as we expect, will lose their money from it. Many of them will then, again increase their borrowed money to do gambling again, so it will be a cycle that will never end until the person will be unable to pay up their debts since they keep on losing their money in gambling.
Therefore, I strongly agree that people should be selected thoroughly whether they are eligible to have a huge amount of loan or not so that they will use it wisely and be able to repay it and so the credit facility will not be one of the non-performing loan.