This study examines the effects of recoverable loans and non-recoverable loans on banks' lending behavior, specifically in the case of the United Kingdom. The study explores the attitudes and intentions of customers towards loans and the impact of interest rates. A case study of Lloyd Banking Group in London is conducted. The study uses a quantitative research design and analyzes data using SPSS. The findings suggest a moderate banks' lending behavior in the UK and a positive relationship between recoverable loans and banks' lending behavior.