Bank Loan Rejected Services

Who Requires a Bank Loan? 

Bank loans are tailored to the specific needs of people or enterprises, such as growing a firm, starting a new one, consolidating debt, etc. Some individuals could use it as an overdraft or trade credit facility. 

In Malaysia, there are several varieties of bank loans; each has advantages and disadvantages that are based on a number of important variables. As a result, while applying for a loan, it may be necessary to understand what form of loan is appropriate based on the aims.

Why Was Your Loan Denied? 

Required by banks- Any loan application must meet the conditions set by the bank. One of them is having a job. Banks would only work with borrowers who can generate revenue because this shows they have the potential to pay back the loan. If you didn't demonstrate that you have a job or are making enough money during the loan application procedure, it would be an automatic denial.

Need for payroll- Even if your employment is stable, any changes to your income will significantly affect your loan application. Despite the fact that your credit score does not accurately reflect your level of income right now, banks will still ask you for this information for further analysis. Your application might be rejected if it is a few Ringgit Malaysia less than the bank requires.

Credit Rating (CTOS or CCRIS)- Your entire track record, including any late or overdue transactions and whether you made minimum or maximum payments, will be available to the bank. It also displays the balance for the current month. From here, the banks will assess your credit risk and understand whether you are a trustworthy borrower.

Lack of credit history- Some of us might not have credit cards or other debt because we are too anxious to make purchases. While this might be a good thing, it has no bearing on the loan application. This is due to the fact that the bank will not have sufficient information to decide whether you are a good paymaster or not, and vice versa.