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Conditions Necessary for World Bank Loans

The loan is principally given to companies, corporations and government. To obtain loans from the World Bank is strictly based on the quotas contributed by member countries according to their economic strength or national incomes, as well as the ability to borrow on the international market by issuing of bonds. Therefore, member countries must fulfil the following conditions before loans are given out:

(i) There must be enough evidence to show that there is no other finance source for the project implementation.
(ii) Enough evidence to prove that loans would be judiciously used for the productive projects.
(iii) Assurance that the loan would be directed to the activities that are basic for economic development of recipient country such as construction of power station, roads, airport, education, agriculture, etc.