How to get a loan or Why banks refuse loans

Banking organizations refuse loans to the population, sometimes without explaining any reasons. And neither an impeccable reputation, nor a decent salary and a prestigious job will help a bank client who has applied for a loan again in obtaining a loan if the bank, for some reason, considers the client unreliable.

There is also a workaround - getting a loan secured by what it is - see, for example, here: ssudy.ru . These are not microloans, everything is fair here, the interest rates are not very different from bank loans, but beautiful eyes will not be enough, you need to ensure your guarantees for debt repayment. In this case, the decision is made immediately, and the risk of failure is minimal. But if a person decides to go to the bank, in order for the bank to be able to minimize the risks of the borrower evading repayment of the loan, it is necessary to fulfill some conditions. We will try to reveal the secret that hides the true motives of banks’ refusals to issue loans to the solvent population in this article.

Main reasons for loan refusal:

The list of reasons or factors preventing the receipt of a loan is headed by the client’s low solvency. The client’s solvency level is calculated based on the data provided by the client on the amount of his official income.

The second factor, which is directly related to the first, is the client’s presence of other debt obligations. This takes into account both the obvious availability of a loan from another banking institution and the fact that the client can act as a guarantor for someone else’s loan.

The third factor is an open credit card, even if the debt has been repaid and has not been used for a long time.

The fourth factor, one of the most common, is a low credit history. Any bank, no matter where it is geographically located, is connected to the general banking system of customer information. This system stores all information about the bank client (loan repayment data, data on delays, non-payments, violations of credit discipline, etc.). Violators of the rules are put on a “black list”; if the client is on this list, then the chances of getting a loan are zero.

The fifth factor is false information intentionally or accidentally indicated in the application form by the applicant, for example, about the applicant’s lack of other loans, amount of income, lack of a criminal record, etc. Having identified inconsistencies in the data provided, the bank will certainly refuse such an applicant.

The factors described above are the most common reasons for loan refusals. But there are cases when the applicant does not fall into any of the above “categories”, but he, like many others, has to hear “no” from a bank employee.

Here are reasons for refusal that are less common:

The Bank carefully studies the labor market, and is well aware of the reliability of certain types of industries in which some of its potential clients may work. If the type of industry in which the applicant works is included in the list of unreliable ones for the bank, then it will refuse the loan.

For the bank, both the size of the requested loan and the timing of its repayment are important. For an applicant with an income of 70 thousand rubles, the bank will never issue a loan in the amount of 15 thousand rubles. Such an application from a client looks suspicious and strange to the bank, and therefore not reliable.

One of the reasons for refusal may be the applicant’s reluctance to obtain insurance.

Inconsistency between the borrower’s declared income level and the position held. When the position does not provide a large salary, but the applicant claims that he receives much more. This will also arouse suspicion from the bank.

Finally, the reason for refusal may be the amount of money requested by the applicant. With a high, stable income, the applicant may request a small amount. The bank expects to earn money by issuing loans, receiving full interest on the loan. But in the case of a “money” client, he will simply lose this opportunity.

In conclusion, we note that going to the bank is not such a hopeless task. It is worth approaching this event with all responsibility, taking care of improving your credit history, collecting all the necessary documents and being a little more persistent. The main thing is not to lose confidence in your abilities. You can do anything!