Often a bank will require a loan officer to make personal visits on customers with loans outstanding.This is encouraged because:

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Personal visits to customers with outstanding loans is an effective monitoring technique because it helps to reduce moral hazard. Moral hazard refers to the risk that a borrower may engage in risky behavior once they have received the loan, knowing that they will not bear the full consequences of their actions. By making personal visits, the loan officer can assess whether the business is using the funds appropriately and take corrective action if necessary. This helps to mitigate the risk of default and protect the bank's investments.

Often a Bank Will Require a Loan Officer to Make