In a situation where the demand for loans is greater than the supply of financial institutions.
Lending is an important source of profit for banks, which can be detrimental if the bank stops or reduces the flow of money to borrowers. Due to excessive debt, they have to stop their reproductive work in order to make money.
Banks have liabilities to their depositors and to those who lend to them, whether they are state-owned or commercial banks. It is the bank's obligation to pay interest to everyone, but if the credit market is closed, it cannot do so.
The amount of customers and lenders is a dead weight; Clients are reluctant to take out loans at interest rates that repay the loan and bring income to the lender's bank. The situation is similar with microcredit organizations, which in principle only work with loan funds and will not survive without issuing loans.
An increase in bank lending rates leads to a credit surplus, when it becomes unprofitable for a potential borrower to obtain a loan from a financial institution.

Extra bank loans refer to additional credit provided by financial institutions beyond a borrower's existing credit limits or standard loan offerings. These loans can take various forms, such as personal loans, business overdrafts, or emergency credit lines, and are often used to cover unexpected expenses, cash flow shortages, or investment opportunities. Banks assess eligibility based on creditworthiness, income stability, and repayment capacity before approving extra loans. While they provide immediate financial relief, they also come with higher interest rates or stricter terms compared to regular loans. Borrowers should carefully evaluate their repayment ability to avoid excessive debt. Extra bank loans can be a useful financial tool when managed responsibly, but over-reliance may lead to long-term financial strain.