The reasons why the bank can refuse a loan

During the same period in 2017, 10% fewer requests were approved. Growth was recorded in all segments of personal loans, with the exception of auto loans. However, it follows automatically from these data that banks are still rejecting more than half of loan applications. Rossiyskaya Gazeta has chosen several reasons why a bank may refuse a loan.

Bad or Empty Credit History

A credit history is information about how a potential customer used to pay various debts. These data are stored in the credit history office, the bank asks for information from them before approving the loan. The degree of "depravity" of the credit history may be different – the bank may turn a blind eye to past delays in payments of up to five days (especially if it does not occur). there were not many). Delays of one month or more (especially more than 90 days) already spoil the credit history – if the bank issues a loan, it will inevitably be insured against losses and will increase interest on the loan. Outstanding obligations, not to mention the collection and sale of collateral, effectively prevented a potential borrower from borrowing from a bank. A total lack of credit history can also result in a denial of credit, since the bank does not know how the client will discharge its obligations. This is more true for a large loan, but the bank will badyze here other factors, especially the income of the borrower.

Low Income

In fact, the main reason for the refusal of a loan. The bank will necessarily evaluate the client's potential level of debt. If the borrower intends to repay more than 40-60% of his monthly income, the probability of disapproval will be close to 100%. Suddenly, a very high salary can also lead to a refusal of credit – not all banks will be interested in a very quick repayment of their debt

High-end scoring

The approval process of a bank loan is automated. and there are scores. The system can check the length of service, and the availability of higher education, a possible criminal record. "Scoring machine" also badyzes the documents provided by the customer. In large banks, the rating can be performed on the profile of the borrower in social networks. The final decision on granting the loan will always be taken by the bank employee, but the computer's opinion on the person means a lot.

External Signage

This method of evaluation is not yet submitted to the computer and is entirely under the control of the director. Bad clothes, bad looks, alcoholic amber and vague answers to separate questions will certainly not provide credit.

The poorly designed loan

The misunderstanding of the borrower can also cut credit. Applying to a bank for a cash loan for a car, a home or a startup is not the best idea. The use of the target program (auto loans, mortgages) helps to ensure at least the first stage of the borrower.