Re-evaluating Lending Decisions for Environmental Awareness
Whether it is to make home renovations, pay off some utility or school fees, or planning start a small business, making a pinjaman peribadi koperasi or cooperative personal loan is one simple solution to make these happen.
To be able to make a loan, commercial and cooperative banks must collect and evaluate enough information from clients who are looking into applying for a loan for the purpose of making a lending decision. Information collected is mostly related to a client’s financial performance.
However, lending decisions made by banks may have environmental implications. But how are banks and the environment connected? This is in correlation with the economy. Banks provide finances, thus these lending decisions play a vital role in the economic sector while the environment itself is needed for economic growth.
A growing economy is good but it also poses a danger to the environment since this would mean an increase in consumption and utilization of natural resources taken from the environment in addition to pollution.
How can banks help in saving and preserving the environment?
- Create and establish environmental goals, policies, and practices
Some banks have already taken steps to be more environmentally aware and conscious. These banks have chosen ways to improve the environment such as involving themselves in community activities such as tree planting activities and supporting projects and organizations that cater to the environment.
- Form and implement sustainable lending policies
Aside from looking at a client’s financial performance, banks must also take a look at their client’s environmental information whether or not the loan will directly involve the environment itself. This environmental information may be collected through questionnaires, surveys, and site visitations.
- Opt for sustainable services, goods, and operations
Some actions done by banks to be more eco-friendly is to reduce, reuse, and recycle the use of paper. For instance, instead of using paper, some banks go paperless by emailing billing statements or yearly reports. Others have mobile apps for online banking.
These are just a few of the many things that commercial and cooperative banks can do to help save and preserve the environment. This is also to spread awareness on environmental issues we face today especially to those applying for loans to use money wisely and in include in their plans environmental sustainability.