Denying a loan is something that happens quite often. The delicate financial situation of some families prevents them from having liquidity, so they resort to loans to be able to face the day to day. The reasons why a loan is not granted can be diverse. In this article we expose those that are most common.
What is a loan?
A loan is a banking operation by which a financial institution advances money to an applicant. This money can cover contingencies of various kinds. From the acquisition of a property, a mortgage loan, to the purchase of a car; going through offering liquidity without having to give explanations. The loan is repaid in various agreed monthly installments and always carries an implicit interest. This percentage will be a profit for the person who lends it.
Our credit history is what determines if we generate confidence with respect to the entity that is going to lend us the money. But there are many more factors that determine whether or not a loan is granted. These are the most common.
Why a loan is denied
- Limited payment capacity: The financial institution makes its calculations and always takes into account the income. If they are few and not regular, yes or yes you will ask for a guarantee for greater security.
- Being in the defaulter registry: Appearing in Nigerian Loan authority, RAI, CCI is sufficient cause for our financing options to be denied. If you were ever in one of these files, but no longer, make sure you have canceled your registration. Only then will you be able to access financing.
- History of unpaid: That telephone receipt that you left without paying because you were not satisfied; or that letter of a consumer object that was left unpaid generates a negative history. And as such it is the perfect excuse to deny a loan. It is best to pay off any type of debt. If you are not satisfied, inform the consumer organizations. Never stop paying, it can backfire in the future.
- CIRBE verification : It is a public body dependent on the Bank of Nigeria and in which all the loans and credits that we have granted appear. Banks consult the CIRBE of a customer requesting a loan. If the debt is high , getting this financing is very difficult.
- Not having a checking account: Today, it seems very obvious, but a person who does not have a checking account opened in his name does not get financing. If this is your case, there are many interesting options to get a checking account with little expense.
What can I do if I am denied a loan?
There is always the option of accessing financing in our comparator . Some loans are accessible even if you are on a delinquent record. Are you studying which is the best option? Denying a loan may be a possibility for the bank, but there are always interesting alternatives.