What to Do When Your Loan Application Is Rejected

Submitting a loan application is a common thing for those who need quick funds to be disbursed in a short time. In addition to the funds obtained can be quickly disbursed, the process is easy and straightforward is also a reason for people applying for loans. Moreover, there are many financial institutions that offer convenience for customers applying for online loans.

Unfortunately, not all loan applications can be approved. Of course, this is confusing, even more so if financial institutions do not give reasons why their loans have been turned down.

Now, are you one of those who have been refused loans? Don’t worry, here are a few reasons why your loan application was declined, and how to deal with it!

 

Incomplete Document Requirements

loan Document Requirements

One of the reasons why someone’s loan application was rejected was because the documents submitted were incomplete in accordance with the requirements. Although the loan application process is easy and hassle-free, completing documents is crucial so that your loan can be approved.

Make sure that the document you submitted is complete, along with the validity period. When you apply for a loan online, make sure that you upload scanned documents with clear and clear images.

 

Ineligible Credit History

Credit History

If you apply for a loan, surely the financial institution will check your credit history through the BI Checking process. If you previously have a history of bad credit, or still have outstanding debt, of course this has the potential to cause your online loan application to be rejected.

Of course, before applying for another loan, you must pay off your credit first. You can bring proof that your credit has been paid in full if you have paid off your credit.

 

Obstructed by Maximum Loan Limit

Obstructed by Maximum Loan Limit

In connection with the previous point, if your previous expenditure or loan is too large, this has the potential to cause your loan application to be rejected. Especially if you apply for a loan more than the credit limit set by the financial institution. This is because the financial institution you are aiming at doubts your ability to pay and avoids the risk of bad credit.

It is better to submit a limit according to what has been set by a financial institution. In addition, the ideal debt ratio is a maximum of 30% of your monthly income.

These are some of the reasons why your loan application was declined. Hopefully the above review can help you to avoid these things, yes. Also make sure to always submit an online loan application that is registered with OJK as your financial solution.

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