If you are in a hurry to get some much needed cash, someone suggests a personal loan as a good option. So, you apply for a personal loan from a nearby bank or cooperative and wait. Unfortunately, your request has been rejected! Why is your personal loan not approved? Personal loans are one of the facilities provided by financial institutions for Malaysians.
There must be many people who feel sad when they find out that their application has not been approved. Not all applicants who want to get a personal loan are successful and approved. Only some are successful in getting a personal loan. If you are looking forward to getting a personal loan to help you achieve your financial goals or save you from a complicated situation, loan rejection may be a matter the last thing you want.
However, applying for a personal loan is not a very easy matter. There are many loan applicants out there whose application is rejected. You also need to know the purpose of borrowing and you need to make sure that you can afford to pay it back. Understanding the reasons for your application rejection may increase your chances of successfully applying for a personal loan in the future.
Here are some of the main reasons financial institutions reject your personal loan application.
· Blacklist CTOS/AKPK/SAA
This is the main factor that is guaranteed to make your personal loan application rejected outright by all banks in Malaysia. There are irresponsible parties who claim to be able to help you get a bank loan even if you are already on the bank’s blacklist. This is a fraud or scam.
· Your salary is less than the criteria
Usually have minimum income criteria for loan application. In addition to this, some also set the amount that can be borrowed based on the applicant’s salary.
· High Debt Ratio
You need to know your debt to income ratio, as it is very important to ensure your loan is approved. This is the assessment reference by the financial institution to ensure your level of ability.
· Working Period Less Than 6 Months
How long have you been working? At least 6 months working period minimum. This is to prevent those who are new to work involved in making loans that will burden themselves in the future.
· Bad Credit Record
This record is needed to assess your attitude towards repaying the loan. How many times have you missed payments on your loans? If more than three times in six months, the hope of passing is slim.
· Request Loans Too Often
There are also individuals who apply for personal loans every week and sometimes they don’t pass today, they want to apply again tomorrow. For those who want to apply for a new loan even if they have a loan or credit account that has just passed – wait for a calm period at least 6 months before reapplying.
· Application documents are incomplete
Documents are important to process as this can determine whether or not you are eligible for the application. Therefore, make sure you keep all the relevant documents so that your personal loan application can be approved more easily.
· Have no credit history
Did you know that if you have no credit history at all, your loan application may be rejected as well? it’s not a bad thing if you have no experience with loans or credit cards. A credit history that shows perfectly paid debts can tell financial institutions that you understand the commitment in front of you and have the potential to be a good payer again.
In any case, let’s not worry too much about this. If your application has already failed several times, it does not mean that you are not entitled to it at all. There may be a few problems that you can still correct. It gives us some lessons that we should correct. Investigate what is lacking and try to correct it so that the same thing does not happen again in the future.