Many applicants for loans, who somehow succeed in satisfying the restrictive
conditions of reliability imposed by conventional building finance institutions,
both state and private, still fail because of the size of the loan. Since larger and
smaller loans both require about the same administrative expense on the creditor’s
part, establishments geared to private enterprise cannot grant loans below certain
minimal amounts without their expenses exceeding their profits. Such minimum
levels for loans involve the borrower in instalment and interest burdens
which are prohibitive for those with small and irregular incomes.