It is ok to require a deposit account to a loan applicant? What if the loan is granted and the borrower never opens a deposit account and the Bank won't renew the loan because they didn't open an account? Can you base the denial of the renewal on the fact that an account was not opened?

If the loan agreement contained a provision that the borrower would open a deposit account and the borrower failed to do so, then the loan is in default. I can't think of a better reason to refuse a renewal. In fact, it's sufficient reason to accelerate the existing loan.