It happens when we immediately make a new application in a loan when we have paid off the previous loan but if the loan is made in a certain interval (stop first) after the previous debt is paid off then it will still be a little difficult for a new application even if we already have a fairly good track record in a loan.
I don't know what's the problem with the bank officer, but ideally you must be easier to get a new loan if you have a good track record. Here, the bank officer even persuade us to take a new loan soon after the old loan was successfully repaid. But I refuse the offer because I know it is like a loan trap made by banks. 
It happens where I live now but I don't know if it happens in other regions, countries or not because in the end policies like this seem to depend on where we live.
I think the bank system won't be so different in any where around the world. Each bank probably adopts the same system and mechanism. I don't see a big difference among the bank in the world.I once accompanied one of my family members to pay off a debt to a bank and the bank that applied for the loan said that it would be a little inconvenient if they did not re-borrow after the current debt was settled because the process could take longer. That might just be a trap to keep us in debt but in the end it happened because after my family stopped borrowing for a certain period of time and re-borrowed again to the bank, the process was a little longer than before.
Sure, it is like a loan trap. But it is also a part of their business because they got money in that way. When you won't agree for another loan and stop temporarily, surely it won't be so easy to get a new loan in the future. They have the information that you weren't a loyal customer. So, they need to evaluate anything first before you have a new loan.