Currently, the question of why banks refuse credit is a hot topic for many. It would seem that it is difficult to get borrowed money at the above institutions, which actively advertise lending programs and assure citizens that they will easily lend financial funds, and the registration procedure will take only 20 minutes? However, not everything is as simple as it might seem at first glance. In practice, a situation often occurs when an employee of a financial institution says to a potential borrower: "I apologize, but we can’t lend you money." Here the question of why banks refuse credit is self-evident.
How to respond to denial of a loan
If you hear the above phrase in your address, in no case do not get upset and do not panic.
The situation when a person is refused credit, the reasons for this are not announced to him, is quite common. Please note that a bank employee is not at all obliged to explain to you on what grounds a decision was made to refuse a loan. To minimize such risks in the future, ask him to still say why you did not fit the role of a borrower. It is likely that a financial officer will contact you and explain the complexity of the situation.
However, it should be noted that there are many reasons why banks refuse credit. Consider the most common of them.
Reasons for refusal
We emphasize once again that it is rather difficult to foresee on what basis you may not be given money on credit. Well, if a person knows at least the basics of banking. Then he can at least partially predict the situation and develop appropriate tactics of behavior. But it is often difficult for a simple layman to understand why banks refuse credit, and most likely he cannot do without the help of specialists. In any case, the information below will not be of interest to him.
Perhaps someone thinks that there are banks that do not refuse credit? Alas, there are none, but there are financial institutions that are more loyal to the rest to borrowers.
Insufficient income
Any credit institution is primarily interested in how a person intends to repay the main debt and pay interest on it. In order to determine the approximate amount of borrowed funds that a client can count on, he must divide his monthly income by two. It is this amount of loan that will be considered by the bank. If in your case it is equal to 15,000 rubles, then you are unlikely to receive the amount of 30,000 rubles. It is for this reason that Sberbank refused a loan to many of its customers. And this institution is no exception.
Remember the minimum requirements
Each financial and credit structure has its own set of requirements for potential borrowers. At the same time, several general conditions can be distinguished, compliance with which is mandatory.
Official employment
It is very important for a banking institution that a person who receives money on credit should have a stable source of income, that is, work under an employment contract.
Moreover, the experience in the last place of work should not be less than 3-4 months. Of course, there are credit organizations that do not need any income statements, but it is better to protect yourself in advance in this matter.
Age
Many financial institutions when considering the issue of borrowed funds take into account the age criterion. For example, the Bank of Moscow refused a loan to those under the age of 21. Moreover, it is important to remember about age limits. As a rule, borrowers older than 70 years cannot count on obtaining a loan.
Permanent Registration
Most financial institutions give loans only to their customers who have a permanent registration. This should also be remembered to those who intend to ask for money in debt. For example, Summer Bank denies a loan to borrowers with a temporary residence permit.
Criminal record
If a person in the past had problems with the law and suffered a well-deserved punishment for this, then his chances of getting a loan at a financial institution are very illusory.
However, if the unlawful actions were not serious, some banks may give the go-ahead for a loan, but in any case, the criminal record must be extinguished.
The potential of credit programs has been exhausted.
Often situations arise when a bank refuses a loan to the most trustworthy borrower. Why is this happening? The fact is that there are times when the financial structure has exhausted the limit that it was allotted for lending. In most cases, this problem concerns small banking institutions, whose management simply does not want to admit that their financial resources leave much to be desired.
Professions and Nationalities
Many credit organizations are afraid to sign an agreement with clients of certain professions. As a rule, this list includes firefighters, police officers, employees of the Ministry of Emergencies. Representatives of these professions are at risk every day of losing their health or life. Naturally, in this case, guarantees of timely repayment of the loan are minimal.
Also, banks do not want to issue a loan to immigrants from Central Asia. Tajiks and Uzbeks are often interrupted by casual earnings and do not have a permanent residence permit.
Bad credit history
If a person in the past has already issued loans and repaid them in a timely manner, this is also a weighty argument for the bank not to lend money. Moreover, he is not at all interested in whether, for legitimate reasons, the person has had delays in payments.
At the same time, some financial institutions are ready to “close their eyes” to the aforementioned problem and issue loans to the client. However, their list is limited. In any case, the issue of delay is decided depending on the time frame, so the chances of getting a loan are greater where there are fewer late payments.
It is noteworthy that the client may be completely unaware of his own credit history, especially if it is unfavorable. The situation is ridiculous when a person decides to take a loan for the first time and at the same time he finds out that he had previously past due payments. Of course, scammers “had a hand” here, who fraudulently seized the passport of such a borrower.
However, the human factor in the above situation cannot be ruled out either. None of the bank employees are safe from accidentally confusing the information of one person with another and entering it into someone else's credit history. Thus, we can draw a disappointing conclusion that the absence of credit obligations in the past is not a guarantee of an impeccable credit history.
Once again about income
It should be noted that an indication of high income can also serve as a reason for refusing to issue borrowed funds. How can this be explained? The fact is that the bank may call into question the fact that the borrower received a “high” salary, if, for example, he indicated a programmer in the “Profession” column. If the level of wages is still consistent with the declared level, then the financial and credit institution may suspect that the employer company is stable, since it allows them to pay such money to their employees.
The situation when a borrower wants to borrow a small amount with a relatively high salary also causes distrust. Such a client, as a rule, is not of interest to the bank, since the loan can be repaid in just a couple of months, respectively, you will not get a big profit from it.
Potential borrowers can be advised to indicate in the application for a loan the maximum repayment period for monetary obligations, since the income of banks depends on interest.
Contact Information
When issuing a cash loan, some banking institutions put forward a condition that the borrower has a landline (landline) telephone. So, Alfa-Bank refused a loan to its customers on the above basis. However, even when providing a “working” number, it is highly likely that you will leave the credit institution with nothing. Try to fill out all applications and profiles legibly. Photocopies of documents should be of the highest quality, and the indicated phone numbers should always be available.
Please note that the above list of reasons for refusing to grant a loan is far from complete, therefore, for a deeper study of the issue, you can not do without the help of a professional.