When a bank reviews a loan application, it checks the borrower on many parameters, and at each stage it can decide to refuse. We will tell you why all banks can refuse a loan and what to do in such a situation.
Why is the loan not approved?
Banks are not required to explain why they do not give a loan to a specific client. But the reasons for refusal are standard, and below is a list of them.
Non-compliance with bank requirements
Each credit institution has its own requirements for the borrower, but the criteria are standard:
age (on average from 21 years);
citizenship and registration;
permanent source of income;
work experience (total and at the current place of work).
Applications from unemployed borrowers (including those on shandong mobile number database maternity leave) are rarely approved. It is difficult to judge solvency if the client has just started working or has recently changed jobs. Usually, at least 12 months of total work experience and at least 3 months at the current place are required.
Almost everywhere they ask to confirm citizenship and registration. Their absence significantly increases banking risks, because if the borrower stops paying, it will be extremely difficult to find him. Still, there are credit programs available to citizens of other countries. But in such cases, you need to prove that you have been living and working in Russia for a long time, have a permanent source of income and do not plan to move.
Lack of credit experience
If you have never taken out a loan before, you may face a situation where applications are not approved anywhere. This is because the bank cannot assess your reliability and creditworthiness.
Many banks approve loans to new clients, but there are limits on the amount. Don't try to take out a large loan right away - start with a small one to build up your credit history. Installment payments in a store are a good option for the first time.
Frequent delays
It is difficult to get a new loan if you have missed payments in the past. If payments are usually on time, but have been late for 1-3 days a few times, this is not a big problem. After all, forgetfulness or a transfer error could be the cause. But long delays are a sign of financial difficulties. If they happened very recently, this significantly reduces the chances of approval.
Current overdue debt
If you have at least one unpaid payment, you will most likely not be able to get a loan anywhere. In such a situation, your application will not even reach the employee - the refusal will come automatically.