All banks refused what to do. What to do if banks refuse a loan, but money is needed? False information or fraudulent documents
Thinking about taking out a loan, most of us want to be sure in advance that a loan will be given, otherwise what time to spend, collecting papers, running around banks, filling out questionnaires? The desire to know in advance is understandable, and this applies not only to loans, but also to life in general. Alas, there is no such magician, wizard and psychic who, looking at you and your documents, would say with one hundred percent probability -.
The fact is that the decision to grant or not grant a loan in banks today is almost completely orderly and regulated. Either the decision is made by a computer on the basis of a built-in scoring model (a set of rules of the “if-then” type, according to which the final decision is made), or by a collegial body, where there is no possibility of sole indication and casting vote. By the way, if someone (like a "credit broker") claims that he has "his own people" in banks who "guarantee a loan" - do not believe it. Such a person can only be a senior official (the President of the bank or his deputies). So what? Will this official lobby for a loan for everyone he meets?
Nevertheless, during my work as a loan broker, I have collected the most common reasons for refusing to issue a loan. This list is far from complete, because the methods of borrower analysis and decision-making in banks are constantly changing. So read the article and understand for yourself - there is something that can prevent you from getting a loan or not.
By the way, I strongly recommend not to "run through all the banks at once" in the hope that "what if they give a loan somewhere." If one bank refused a loan, then the second, you should stop going around the banks and be puzzled by finding the true reasons why you are denied banks. Because now every request for your credit history is recorded in the credit bureau - the essence of processing your loan application. The more you “run around the banks”, the higher the value of this “counter”, the more likely it is that the next bank where you apply for a loan will find that you have tried many times to take out a loan, but you were not given it. What conclusion will be asked from the bank in relation to you? That's right: if other banks refuse, then we will refuse, just in case.
Tightening the rules
Getting a loan has become much more difficult, and this applies to all loan products for individuals: and, and, and, and simple.
The main reason is a recession in the economy and a decrease in liquidity in the banking sector as a whole. In simple terms, there is little money in the economy, so little that everyone who wants it is not enough. Where did the money go? a difficult question, but it is enough to look at the deposit rates offered by banks to conclude that banks really need money and they do not skimp on deposit rates.
When banks have little money, they cut back on lending, which is quite logical - in order to lend money, you must first take it somewhere. At the same time, the volume of advertising for various programs for the population did not decrease at all. It would seem strange: since there is not enough money, why advertise?
Here the laws of advertising work - if you do not advertise the goods, competitors will take over the information field, and when there is enough money and loans can be issued, it turns out that there are no free billboards and banners, and the clients have "lost the habit" of the bank providing the necessary services. They can forget the name of the bank. So don't be too fooled by active advertising for the population - advertising - does not mean that they give out.
On the other hand, banks cannot refuse to issue loans at all - interest on deposits is something to "beat off" - only by placing attracted deposits in loans. But since there is little money for issuing, and as a result, there are a lot of people who want to take out loans, it is necessary to tighten the requirements for borrowers in order to issue small resources with the maximum effect - and earn profit and cannot ensure delays. From the point of view of the theory of loan portfolio management, the task, of course, is ideal - to issue such loans for which everyone will pay, and even at such high rates.
So today banks in scoring models have “included” all stop factors, according to which any “oversight” or even “hint” of a possible future delay will cause a refusal. So, if you carefully read our article on possible causes, then today I can confidently assert: "All of the listed reasons are 99.99% possible and take place today."
Why refuse?
Age
Do not think that as soon as you have received your passport, the banks will be happy to provide you with a loan. The main criterion is your solvency (now and then - after receiving a loan). Age is a kind of border that cuts off, so to speak, a certain level of responsibility.
As a rule, consumer loans in cash and credit cards are provided to women over the age of 23, men - from the age of 24. You ask: why such discrimination? Everything is quite prosaic simple: banks have calculated that under the age of 24 years, the highest probability of being drafted into military service. How, in this case, can the bank collect a loan from you? Fishing in polygons? So you will be in arms.
At the same time, there are credit programs, according to which the borrower can be a person aged 18 and over. Basically, these are mortgage programs. In this case, banks are ready to lend to young people, realizing that the mortgage will be real estate - one hundred percent guarantor of the return of the loan.
Insufficient income
The level of your income is perhaps the most basic parameter that banks "look" at when deciding whether to grant you a loan or not. Some banks openly declare in the terms of lending that the monthly income must be at least a certain amount. Some are silent, but they necessarily have this limitation in the scoring system.
Ultimately, the bank assesses your solvency as the ratio of income and the size of the planned payment for the requested loan. It is believed that the amount of all payments on loans, both valid at the time of applying for a loan and for the requested one, should not exceed 30-50% of the total income. Banks take into account the average income over the last 3, 6 or 12 months.
By the way, some banks have online calculators on their sites, in which you can calculate the maximum loan amount you can count on based on your income. Or vice versa - what income should you have in order to qualify for a loan of a certain size for the required period.
In mortgage lending, the total family income is taken into account in the calculation of solvency, if both spouses act as co-borrowers on the mortgage, this is usually the case.
No landline home phone
Some banks have a security requirement - it is mandatory to have a landline home telephone at the registration address or at the address of the actual place of residence. Thus, the banks believe that you permanently reside in a certain place and in case of non-payment of the received loan, they will know where to look for you.
By the way, if you apply for a cell phone with a direct city number - this "trick" may not work: in serious banks there are databases of cell phones and lists of the first digits of numbers corresponding to cell phones.
The requirement to have a phone is usually clearly stated in the terms of the loan, although it is not mandatory.
No landline work phone
If banks can be condescending to the absence of a landline home phone, the absence of a landline work phone will definitely alert the bank's security service: what kind of organization is this in which you work that there is not a single landline phone?
The requirement for the availability of a landline work phone may not be voiced in the credit terms, but in the overwhelming majority of cases it is assumed a priori.
The reasons for refusing a loan related to landline telephones, however, hopefully, will soon become outdated. More and more people do not have a landline phone at home, but they have two smartphones. It's the same with organizations.
The cell is registered for another person
It is unlikely, but banks can check who the cell phone that you indicate in the questionnaire is actually registered as yours. If he is registered with a spouse, relative or someone else, this may serve as a reason for refusal. What's the logic? I do not know. I am writing about this based only on experience. Maybe because the bailiffs are about to be given the right to write off defaulters' money from the accounts of mobile operators. And if it turns out that the cell phone is not yours, then even these pennies will not be charged.
Short work experience
Work experience, both general and in the last place of work, is a kind of indirect characteristic of the stability of your income over time. The logic is approximately the following, the longer you work, especially in the last job, the more likely it is that you are a good specialist who, firstly, will not be fired, and secondly, who will be paid further, or even more.
Usually the requirement for length of service is spelled out immediately in the terms of lending in the section "Requirements for the borrower". Usually, work experience of at least three months is required at the last job, and general - at least six months.
Work for individual entrepreneurs
Yes, alas, one of the reasons why banks refuse a loan is work for individual entrepreneurs. Again, I personally met with the requirement that the borrower "was not employed by an individual entrepreneur", but there were precedents when the bank did not advertise this very reason. Apparently, some banks believe that the work of an individual entrepreneur is not as reliable and stable as in an LLC or JSC.
How do you know if there is such a requirement or not? Carefully read the loan conditions in terms of requirements for the borrower, especially the notes and footnotes in small print and at the bottom of the page.
Business owner
If you are a founder or director of a legal entity or registered as an individual entrepreneur, there is a high probability that you will run into a refusal to issue a loan. Why? Banks suspect that you can spend the loan not for the personal needs of you as an individual, but for the needs of your business. Such a limitation is usually spelled out in the terms of lending.
By the way, on a mortgage it is usually prescribed that business owners must also provide documents on the business to obtain a mortgage loan, but it is easier for business owners to get a mortgage than a consumer loan.
However, some banks specifically for business owners have special consumer lending programs, such as.
Purpose of the loan
If you specify "repayment of an existing loan" as the purpose of the loan (especially if it is overdue), you are guaranteed to be refused, unless it is a special loan refinancing program. The fact is that, according to the requirements of the supervisory authority (the Central Bank), loans issued for the purpose of repaying other loans are classified as the worst loans, for which the bank is obliged to form the maximum amount of reserves from the profit.
Likewise, you will be denied a loan if you specify a business goal as a goal, for example, replenishment of the working capital of your LLC, purchase of equipment, even worse - starting your own business. In the best case, you will be offered to take a loan for a business, and this is a different package of documents and other terms of consideration, in the worst case, they will be refused.
On "opening your own business" - there will definitely be a refusal in a loan, unless it is a special lending program.
Many active loans
How many loans can one person take? One, two, three, five, ten? Each bank itself determines how much, in its understanding, the "normal" amount of loans that an ordinary person can serve. I have never seen a limit on the number of active loans in the requirements for a borrower. From experience I know that banks generally consider 3-5 valid loans to be normal, including the one you are applying for.
Too often take and extinguish early
If you constantly apply for loans, and then repay them ahead of schedule within three to six months from the date of receipt, or even immediately, then do not think that in this case you are an ideal borrower for the bank. Quite the opposite. By giving you a loan, the bank expects to earn interest on you for the entire term of the loan. And you - once - and paid off. And the bank paid the salary to the credit manager who issued you a loan, thus incurred expenses. So don't try to pay off your loan too quickly.
Lack of credit history
If you have never taken out a loan, then the bank will have a question: how to be sure that you will pay? if you have a credit history, you can "estimate" how you will service the debt, based on the history of your payments. Some banks do not talk about this, but do not give loans to those who have not used loans before. However, this is rather rare.
Workers in hazardous occupations
Some reasons for refusing a loan can be considered completely unfair. So, some banks have lists of "dangerous" professions, in which, in their opinion, the employee may lose life or health, and the bank - the hope for the return of the loan received. These categories of workers include security guards, bodyguards, police, firefighters.
Having a criminal record
You will be denied a loan if you had a previous conviction, worse - if it has not been removed. Absolutely disgusting - if you have a criminal record on economic charges, you will be denied a loan one hundred percent.
In rare cases, the security service can "close its eyes" to removed convictions, conditional convictions, for "everyday" (not economic reasons) - but this is more the exception than the rule.
"Denominations"
There are such concepts as “nominee founders” and “nominee directors” - that is, persons who are listed as founders and directors of dozens of firms in securities, but in fact other people manage business processes. Bank security services try to keep lists of such "denominations", and if you are one of them, then you will not get a loan.
Well, and whether you are "face value" or not - you yourself know for sure.
Mentally unhealthy people
The refusal to provide loans to drug addicts and mentally ill people is generally understandable. We only note that the main legal danger for banks is that these citizens can then say that they signed in a state of "insanity", and therefore, in a judicial proceeding, such a deal can be declared null and void.
Bad credit history
If you previously took loans and were delinquent on them or at the time of submitting a new loan application has overdue outstanding loans, then I can confidently tell you that you will be refused a new loan. Put yourself in the shoes of the bankers, the person took loans and did not pay, or has not yet repaid the existing loan, therefore, he will not pay on our loan.
Likewise, the bank's refusal to apply for a loan threatens those whose close relatives have problem loans. The logic of banks is that they believe that you are borrowing to solve the financial problems of a close relative or spouse through a new loan. Accordingly, the risk of default on such a loan is extremely high.
Forged documents or information
Keep in mind that the methods of checking future borrowers are constantly being improved by the security services of banks. If during the pre-credit check it turns out that you provided false information about your work, or brought fake documents to the bank, then at best you may simply be denied a loan.
At worst - to prosecute for articles or fraud, or providing false documents to obtain a loan.
Different information - in different banks
Yes, the security services have the opportunity to check what personal information about income and place of work you provided to other banks. And if this information does not coincide, then it is easy to assume that the banks will immediately conclude that some of these data are false. Conclusion - refusal.
How to find out the reason for refusing a loan
If the above reasons for refusing to issue a loan do not apply to you, but you still receive loan refusals, then you need professional help to figure out the true reasons. In accordance with the civil code, the bank is not obliged to provide you with a loan, nor is it obliged to report the reasons for refusal. And as far as I know, bank employees never voice the reasons for refusing a loan to you personally. How to find out the reasons for the refusal?
The first option is independent. A must from all credit bureaus. Carefully study this data - there are situations when banks provide erroneous data, ranging from simple bugs - the loan is actually repaid, but there is no information about this in the credit bureau, and ending with technical errors. If errors are found, urgently write statements of a certain format to the credit bureaus with the attachment of supporting documents that everything is in order with your credit history.
The second option is to contact those who have the ability to check you on the same databases as banks, and besides, get your credit history officially from the credit bureau. Accordingly, on the basis of these data, they will tell you why the bank refused a loan, they will tell you what needs to be done to get the "bank favor" for a loan.
Despite the fact that most of the reasons for refusing a loan are obvious, we would like to once again tell you about them in detail. If only because the client does not always realize that this or that reason appears in his case, and banks always have their own vision of the situation. So why don't they give a loan?
Solvency
The most important thing for the bank is to make sure that you can get your money back. Everything else is secondary to him. Ideal credit history and a position in a well-known corporation will not save you if the salary is low.
Suppose you receive 40 thousand rubles a month and wish to take out a loan of 200 thousand for 2 years at 20% per annum. A monthly payment of 10 thousand rubles is only a quarter of the salary. But the bank takes into account all the necessary expenses. He will take from the remaining 30 thousand:
- communal payments;
- current loans (if any);
- rent for an apartment (this is why the bank asks if you live alone or with someone, rent an apartment or own a home);
- a living wage for each dependent (or alimony);
- possible unforeseen expenses, etc.
The more money you have after these deductions, the better your chances. Of course, it all depends on how much and for how long you want to receive. The larger the amount, the more carefully the solvency will be assessed. And, of course, different banks think differently. One will refuse a loan, and the other will give more than asked. Apply to several organizations at once.
If you take a mortgage, then not only current income is analyzed, but also the estimated level of well-being in the future. Even if you brought 2-NDFL with a high salary, the bank will still take the average market salary for your specialty in order to have an idea of \u200b\u200bhow your income will change when you change jobs.
It is recommended to make significant initial payments when applying for a mortgage and car loan. It is believed that if you have savings, then you know how to manage your income. In addition, since you are ready to invest a considerable amount, it means that your intentions are serious, and you can do business with you.
For the same reason, pledges, guarantors and co-borrowers are welcome. Firstly, it is a guarantee that the bank will not suffer losses as a result of cooperation with you. Secondly, you risk property and relationships with guarantors (co-borrowers), which means that you are sure that you will repay the loan without problems.
It doesn't matter if you have low official wages. The bank is calm about “gray” salaries, although the rate for such clients is offered at a higher rate. Submit two certificates - 2-NDFL and in the form of the bank.
If your boss refuses to sign a bank statement, then prove your solvency in other ways. Bring documents that indirectly confirm sufficient income - receipts and contracts for the purchase of expensive household appliances, a certificate of ownership of real estate, title deeds, certificates of receipt of benefits, a passport with marks of travel abroad, etc.
Credit history
It is difficult to say whether this parameter is the second most important or is on the same level with the ability to pay. But the fact that today absolutely all banks check the credit history of a potential borrower is a fact.
Your credit dossier contains information not only about overdue or unpaid debts, but also about current loans. That is, you may be refused a bank not only because in the past you had problems with payments, but also due to the fact that you are already paying off one loan.
Last year, the Central Bank tightened the conditions for issuing loans, which is associated with the high debt burden of the population and the increased percentage of defaults. Now, having at least one unpaid loan is a sufficient reason for refusal (even if you repay the debt on time and in full).
The most annoying thing is that you may not know that you have a bad credit history. A one-letter typo when entering data into the database, and you become the owner of someone else's credit history. Or the loan is yours, but you fully repaid it, and the bank did not notify the BKI (Bureau of Credit Histories) about it.
How do you know that something like this has happened? Once a year, you can request your credit file free of charge, and we recommend that you take advantage of this opportunity. If you find extra lines in your dossier, then send an application to the appropriate BKI. The organization will send a request to the bank. The bank must check the information and, if an error is found, report it to the BCH, after which amendments will be made to your history. If the bank and BKI are inactive, feel free to go to court.
Different banks have a different understanding of the corrected credit history. In general, it is believed that if within two years you regularly repay new loans, then delays on old ones do not matter. But one bank will agree with this, and the other will refuse, despite your efforts. As a rule, large banks refuse. They have no shortage of clients. If you are not all clean with a credit track record, try partnering with newly opened or little-known banks.
Funnily enough, a credit history that is ideal from a borrower's point of view is not always ideal from a bank's point of view. For example, you regularly take out loans and successfully repay them much ahead of schedule. This, of course, confirms your responsibility and solvency, but does not make you a desirable borrower. In case of early repayment, the bank loses interest, and such an alignment is unprofitable for it.
Providing false information
Even unintentional bank fraud has consequences. An example from life. One girl, let's call her Katya, decided to buy a fur coat on credit. She worked in a reputable company, received a good white salary, had a higher education and 2 years of continuous work experience in the last place. And the fur coat was not to say very expensive.
The only problem was that Katya was registered with relatives, and lived in a rented apartment. Deciding not to embarrass the bank, Katya said that the place of permanent registration and actual residence was the same. She indicated her home phone number at the place of registration.
The girl was very surprised when she was not given a loan, because at first glance there is no reason for the bank to refuse.
Here is how it was. The bank employees called the apartment in which Katya was registered on the specified phone and asked if the girl really lived there. Her middle-aged aunt answered the phone. Not understanding the situation, the compassionate woman was afraid that her niece got into a bad story, and lied that, they say, such and such does not live here, and nothing is known about her whereabouts. What is called good intentions ...
Katya was an ideal borrower, but because of such a misunderstanding, the bank employees thought that she had provided false information about herself. And it's good if the girl was simply refused. If she was blacklisted (unofficial exchange of information between banks), then it will be difficult for her to receive loans in the future.
- If you indicate the contacts of acquaintances, friends, colleagues, relatives, be sure to warn them about it. And give them clear instructions on what to say if the bank calls.
- Before signing a loan application, carefully check the correctness of the data specified in the application form.
- Do not lie. Bank employees are people too. They know that the lion's share of the country's population lives outside the place of registration and receives a salary in an envelope. A bank is not a tax office or an inspection at all. He will not "betray" you, otherwise he will lose clients. Nothing bad will happen if you tell the truth.
Another thing is that it is desirable to keep silent about some things. For example, if you plan to change your place of permanent residence, go on maternity leave, use property acquired with a loan for commercial purposes, have an incurable (or mental) illness, or are fond of extreme sports, then this with a probability of 99.9% guarantees a refusal. Just do not report it, and then it turns out that you did not lie, but simply did not say (and no one asked).
Problems with law
Alas, a criminal record, even if it is canceled, in most cases means an automatic refusal. Banks argue that if a criminal record is extinguished and is not related to economic crimes, then it is not a reason for refusal. In practice, such borrowers are usually not given credit. Although, this is not a sentence, and there are exceptions.
Another popular reason for the refusal of banks in a loan is the debt identified by a potential borrower for "communal services" or taxes. Debt on utility or tax payments gives one hundred percent refusal, if the bank comes to mind to check it. As well as the initiation of an administrative or criminal case against you. The bank has many unofficial channels of information through which it receives data that it is not supposed to know. But you will not prove anything, and the bank is not obliged by law to disclose the true reason for the refusal.
Wrong target
Target loans are also targeted in order to limit the list of purposes for which the loan funds will be spent. For the bank, this is fundamental, so think carefully about the correct presentation of your plans for the future.
In particular, banks do not want customers to spend loans to individuals for commercial purposes. After all, they develop special products for organizations and entrepreneurs, as well as loans for business development.
Therefore, if you are not yet a legal entity, but are going to open your own small business, and you need a small start (for example, money to buy a gazelle for cargo transportation), then the bank will refuse, since this is a high risk for it. There are two ways out:
- write an ideal business plan that leaves no doubt about the profitability of your business, register a business and only then go for a loan;
- immediately go for a loan, but negotiate correctly - honestly answer what you want to buy, but do not say why you need it.
In general, it is advisable that you spend the received loan on something useful. For example, you want to buy a gift for your relatives - a large plasma TV. Do not write the word “gift” in the “purpose of the loan” column. Write that you are investing in the purchase of expensive home appliances.
The economic situation in the country
In times of crisis and stagnation, refusal to issue a loan is a common thing. The reason is the instability of the financial position of both the potential borrower and the bank itself (it simply does not have "extra" money to give it to you).
In addition, as we mentioned above, in 2013 the Central Bank ordered banks to tighten requirements for borrowers. People take more and more new loans, but they are unable to pay off. Most of all, those citizens who have the lowest incomes are credited (this is understandable).
As the famous American actor and radio host Bob Hope put it, "The bank is the place where you can borrow money if you prove you don't need it." Now this statement is more relevant than ever.
Non-compliance with formal requirements
The conditions for issuing a particular loan imply certain requirements for the borrower. Mismatch provides automatic failure. Moreover, such parameters are a kind of "constant values", and it is extremely difficult to "cheat" here. We are talking about citizenship, registration, age, work experience, availability of a landline phone, etc.
Some information can be corrected. For example, saying that you have a part-time job will increase your income. Or even a bank employee, entering your data into the program, will add a month of experience, if a certificate from the place of work is not required to obtain a loan.
But you won't do anything with age, citizenship, and registration. Age is less critical, although banks prefer borrowers 25-40 years old.
Requirements for registration at the place of residence (stay) are different - in one bank you need to register in the region where the credit institution is present, in another, it is enough to have permanent registration in any region of the Russian Federation. In most cases, citizenship is a mandatory requirement.
In theory, such requirements can be circumvented if you can convince the bank employees at a personal meeting that you can be trusted. But only if you are truly a reliable, paying customer and can prove it.
Non-compliance with informal requirements
We are talking about those requirements that are, but are not declared. Probably everyone already knows what scoring is. This is such a harmful computer program that analyzes your data and assigns a value to each parameter (age, salary, availability of loans, etc.).
The amount of points determines the bank's decision whether they will give you a loan or not.
The catch is that there are many conditions crammed into the scoring that the bank will never tell anyone about. If only because some of them are openly discriminatory. For example, how do you like these settings:
- women are more disciplined borrowers than men;
- a pregnant woman is the least reliable category in terms of ability to pay;
- the borrower renting an apartment is more responsible and enterprising than the one who lives in his own home, etc.
If everything is in order with solvency, work experience and credit history, but they do not give a loan, it is easier to go straight to another bank than to puzzle over the reasons.
Let's make a reservation right away that these conditions differ in different banks. What one organization welcomes, another rejects. As well as the fact that you have approved a loan for a phone does not mean that you can easily get a mortgage from this bank.
Finally, an example. You have successfully passed the scoring, but this credit is subject to an additional check by the security service. And it just so happened that the employee was in a bad mood when he called you at home. It seemed to him that your relatives did not speak politely enough to him. Renouncement.
Wrong profession
This is also one of the unspoken rules. For example, it is difficult to get a loan for people:
- those working in a sphere characterized by low incomes (for example, social);
- engaged in hazardous activities (firefighters, bodyguards);
- those whose earnings depend on the season or the number of transactions;
- drivers (a borrower-driver can easily lose his job if his driver's license is revoked), etc.
Unreliable employer
Rather, an employer who is unreliable in the opinion of this bank. Usually, the employer is checked only if the client wants to get a large loan. Bank employees analyze how firmly the company is in the market. If possible, they "break through" her financial condition.
Individual entrepreneurs also fall out of favor. It is believed that an individual entrepreneur has a higher risk of bankruptcy than any LLC or JSC.
If you yourself are an individual entrepreneur, then there is even less confidence in you. Not only are you less financially stable, you also write your own income statements. Although banks assure that this stereotype is in the past, and today entrepreneurs are quietly issuing loans. It’s not that they’re lying, but it’s not true yet. The stereotype is strong.
As you can see, the reasons for the refusal can be different - from logical to frankly strange. If you were refused, try to analyze yourself as a borrower in terms of the reasons given in the article. Didn't find any flaws? Then just contact another bank. Good luck!
Be sure to read the following material.
Recently, there are situations when, after submitting an application, banks refuse to issue a loan. At the same time, credit institutions are not required to explain their decisions. As a result, those who really need money are trying to independently understand why banks refuse a loan. It is also important not only to understand what the reasons for negative decisions are, but also to try to change the situation in your favor.
TOP-10 reasons why a loan is refused
Is it possible to find out why the loan was refused? It is impossible to name the reason with absolute certainty. The situation should be studied for each specific person separately, analyzing his personal parameters. Nevertheless, there are several main circumstances that can serve as a reason for refusing a bank loan.
- Age. Despite the fact that some banks in the conditions indicate that they issue loans to persons from 18 years of age, they are in no hurry to do so. This is explained quite simply: young people are often deprived of stability in life, they may not be serious enough. In addition, there is a high likelihood that men under a certain age may be called up for service. The easiest way for young people to get a loan with property pledge. For example, with sufficient income, they may be issued a mortgage or car loan.
- Bad credit history. Everything is simple here, if a potential borrower previously took loans and did not pay them on time, the bank will classify him as a client with a high risk of non-repayment. It will be difficult to get a decent amount of debt in this case. You will have to use various methods of correcting your credit dossier.
- Lack of credit history. Often they refuse to receive a loan for a large amount and in the complete absence of a credit history. The bank cannot know in advance how responsibly the applicant will treat the loan payments. For those who have never taken out loans before, it is better to start with small amounts.
- Fake documents and information. Today you can see ads with a proposal to prepare such at every step. The borrower will issue a certificate and employment certificate. You should not resort to such services in any case. Lending institutions can easily recognize the use of such schemes. In the best case, there will simply be a refusal of the bank, in the worst case, they can be brought to criminal responsibility for forging documents.
- Insufficient income. Even those who seem to have. Large income, before applying for a large amount, you should use a loan calculator. Of course, each bank has its own calculation method. But it is unlikely that the applicant will be approved for a loan. If the payment amount is more than half of the monthly income minus mandatory payments. It is also important to take into account the presence of dependents, other loans, the category of housing (own or rented).
- A large number of active loans. Many banks accept 3-4 for the maximum possible number of open loans. If there are more of them, most likely the borrower takes loans aimlessly, without hesitation. Such borrowers often complain that they were even denied refinancing.
- Work for an individual entrepreneur. Many banks consider small businesses to be unreliable. Consequently, applicants who work for individual entrepreneurs will be classified as borrowers with a high risk of losing monthly income.
- Lack of a landline phone. Many lending institutions require one to be at home or work. If they are not indicated, they may not issue a consumer loan. To avoid rejection, it is important to take care of the rooms in advance. You should come to the bank with a list of phone numbers of friends and acquaintances (not cell phones), the employer's office, accounting department, and the direct manager.
- Having a criminal record. Often, application rejections haunt those who have ever had a criminal record. This even applies to those from whom it has already been removed. Very rarely, security officers do not pay attention to conditional convictions, as well as those arising from domestic crimes.
- In different banks, the borrower leaves different information about the place of work and income. The fact is that the employees who check the applications often compare them with the information that was provided to other banks. If it differs, most likely the data is invalid somewhere. To protect yourself, a loan is denied.
What to do if a loan is denied in all banks
Many want to know why they refused a loan. As mentioned above, asking about this in a credit institution, it will not be possible to get an answer. However, there are two ways you can do this.
The first option is independent work. First of all, you should request your credit history from various CHBs. Then carefully analyze it. There are situations when a loan has been closed for a long time, but the dossier does not indicate this, or even worse - there have never been delays, but they are in the credit history. If errors are found, you can safely contact the BKI. You will need to write an application and attach supporting documents to it - copies of payments, credit orders, a certificate of debt repayment from the bank.
The second option is the help of professional credit brokers. They analyze the borrower in the same way as banks. Such organizations will not only tell in detail why a loan is denied, but will also give advice on how to fix the situation.
Detailed advice on how how to fix credit history read in a separate article.
If a borrower is denied a loan, all is not lost. Experts give several tips on how to get the coveted money.
- It is worth submitting applications to all available banks. The easiest way to do this is to use internet sites. In this way, you can increase the likelihood of approval.
- If you know for sure that banks are failing due to bad credit history, it is worth trying to fix it. It will take a lot of effort and time, but often it is simply necessary.
- If it is not clear why banks do not give loans, you can try to take a loan secured by property. Such applications are much more readily approved.
- You should once again independently calculate the maximum loan payment. In this case, all compulsory payments, a living wage (including for dependents) must be deducted from wages. The amount received should not be less than the planned payment, and ideally - half of it. If this condition is not met, it is worth reducing the loan amount.
- As a last resort, if you need a small amount for a couple of weeks. you can contact microfinance organizations. They approve of loans to everyone. But don't forget. That their interest rates are very high.
The bank refused to restructure the loan what to do? - the answer is simple. In the current economic situation, some borrowers are experiencing serious difficulties with loan repayment.
Termination of the employment agreement, the need for urgent treatment, an increase in the size of the family and other unforeseen circumstances force them to look for new ways to resolve issues related to the repayment of existing financial debts and the prevention of delays.
The way out in this situation is to contact a credit institution in order to relieve the debt burden. If the bank can refuse to restructure the loan, find out in this article.
So, restructuring is the procedure that the lender implements in relation to the borrower in order to change the terms of debt repayment. As a borrower, you can take advantage of this scheme.
The procedure provides for a change in the payment schedule, a decrease in the amount of monthly installments and a decrease in the interest rate by mutual agreement of the parties. The creditor and the debtor can choose the optimal debt recovery scheme under existing programs.
You should learn more about them. Be vigilant: if the restructuring cannot be negotiated, be prepared to appear in court as a defendant.
Types of restructuring
Depending on the obligations under the contract, the restructuring is provided in the form of:
- prolongation of the loan agreement;
- change in the currency in which the debt should be repaid;
- credit holidays;
- transfer of a card loan to a cash loan;
- decrease in interest rates;
- writing off the penalty.
In considering a specific situation, the lender may use several leverage to ease the financial burden on the borrower.
Prolongation of the loan
The prolongation of the loan obligation is understood as the restructuring of the loan, which provides for a decrease in the monthly burden on the debtor by increasing the loan term.
The conditions for a possible prolongation are sometimes specified in the text of the main loan agreement. In such a case, you can get to initiate loan renewal without additional application. The likelihood of reaching an understanding will increase if the borrower has properly fulfilled his financial obligations.
Rolling over debt is actually an effective leverage for out-of-court interaction with a given client. In this way, delays in a bilateral agreement can be avoided.
Benefit of the lender
By agreeing to loan restructuring, banks preserve the size of the loan portfolio, an active base of bona fide clients, and effective servicing of problem loans within the framework of trusting relationships with borrowers. However, you also benefit from such an offer.
Borrower benefit
- maintaining a positive credit history;
- the ability to pay off debt to the bank without violating the terms of credit;
- decrease in the monthly financial burden against the background of an increase in the total amount of debt;
- the ability to choose a rollover scheme that will help you get out of a difficult situation and pay off your debt;
- the opportunity to stay in the base of positive borrowers of the BCH, avoiding delays;
- the ability to save the collateral, as well as the credit history of guarantors and co-borrowers (if any);
- the ability to avoid litigation.
You should not delay contacting a financial and credit company. If circumstances arise that prevent the perfect fulfillment of the terms of the loan agreement, immediately apply for a review of obligations. Otherwise, the company's lawyers may go to court.
List of documents required for loan restructuring
Depending on the current situation, the expert may request documents confirming the occurrence of force majeure circumstances. Nevertheless, there are a number of standard requirements, which provide a list of mandatory documents.
Among them:
- an application in the prescribed form for the relief of the credit burden;
- applicant's (borrower's) passport;
- a copy of the work book certified by the employer;
- certificate of income 2NDFL;
- a certificate from the local employment service on the status of the debtor.
In order to obtain consent to restructure a loan in the same bank, the client must provide arguments confirming the fact of temporary destabilization of the client and prove that he has a firm intention and ability to pay off the lender. Otherwise, the credit committee may refuse to revise the terms of debt repayment.
In case of a positive decision, the parties conclude an additional agreement, which specifies new conditions for the return of financial debt. It is important to note that you can only contact the experts once with a request to review the situation. In any case, while this loan agreement is valid in the bank where the loan is issued.
Restructuring must be approached in a sound manner so that the lender does not refuse the request. In particular, it is necessary to draw up a plan for overcoming this situation and prepare the necessary documents to justify this plan. It can be:
- preliminary agreement on employment at a new place of work;
- a certificate stating that the property has real estate or movable property that the client intends to put up for sale in order to repay the debt;
- preliminary agreement for the wholesale of goods or services (for entrepreneurs);
- draft agreement reached on lowering the purchase prices for raw materials (for individual entrepreneurs);
- lease agreement for free property;
- documents on the introduction of advanced production or sales technologies with the calculation of the economic effect;
- certificate of absence of delays in payments to the budget and off-budget funds;
- a copy of the Order on reducing the number of employees against the background of maintaining or increasing the volume of production (sale) of goods or services;
- a sound business plan that provides all possible options for debt repayment (optimal, pessimistic and maximum).
It should be understood that a request to revise the payment schedule is not always satisfied, and then a situation arises: the bank refused to restructure the loan, what should be done?
Reasons for a possible bank failure
Before filing an application, it should be remembered that the creditor is not obliged to restructure the debt, and will only meet halfway if the debtor's arguments are properly substantiated.
In what cases does a bank refuse to ease the debt burden? Among the reasons for a negative decision (the expert may not disclose them) may be:
- unconvincing argumentation of the debtor;
- lack of a clear plan for overcoming the crisis (with calculations);
- the client's attempt to submit fictitious documents for consideration (this can be established by the court);
- exceeding the permissible age of the borrower at the time of full repayment of the debt;
- lack of a financial reserve in the bank (in practice, there are many cases when the bank refused for this very reason);
- objective reasons (economic or political destabilization in the country, natural disasters, hostilities, default, etc.).
What to do if a the bank refused to restructure the loan?
It should be borne in mind that instead of restructuring, as such, the financial company may offer the execution of another loan agreement in order to pay off the resulting debt.
Typically, the terms of the new loan differ from the existing loan commitment. It is better to talk to a lawyer about how profitable a new loan is, asking him a question: the bank refused to restructure the loan, what should be done?
When the bank unambiguously insists on the fulfillment of the primary contractual obligations, do not give up.
The first thing that can be done is to apply to other credit organizations in order to restructure the loan in that bank. In other words, the other bank, instead of the debtor, will repay the existing loan, and the client will settle accounts with the new bank on other, more favorable terms for him.
Among the organizations considering the possibility of loan restructuring, you should indicate where you can contact:
- Savings bank;
- PJSC VTB 24;
- Raiffeisenbank;
- VTB Bank of Moscow;
- and etc.
- BANK "Vostochny" - 1% of refusals
Probably, in the new bank you will be able to prove your capabilities and reasonably convince loan officers that obligations to this bank will be repaid on time and in full.
Clients may be denied a loan. Creditors are not required by law to explain the reason for their actions. However, in order to get the desired loan, a citizen must change the type of loan or wait for the specified period to expire to be able to submit a new application.
We will talk further about what to do if a loan is refused and how to get money.
The reasons for refusing a loan in most banks are identical, therefore, despite the fact that they are not personally disclosed to potential borrowers, everyone will be able to analyze their candidacy and understand what was done wrong and on the basis of what the refusal was received.
The main reasons for refusing a bank loan:
- Non-compliance with the age range. Despite the fact that many banks indicate issuance in the conditions. In practice, they often refuse young people. This is due to unstable earnings and possible conscription.
- Bad credit history. If the client has an overdue loan and did not pay off the debt on the previous loan on time, lenders will refuse to receive a new loan. The bank classifies such a borrower as a non-executive citizen with a high risk of non-refund.
- The absence of a CI does not provide the bank with an opportunity to assess the real financial position of the client and his attitude to the repayment of the debt on previous loans. Therefore, the first loan should be taken for a small amount and repaid on time to show that you are solvent.
- Providing inaccurate data and documents.
- Insufficient income level. The client may request a huge amount of money, for which he will not have enough funds to pay. The monthly payment percentage cannot exceed 50% of the borrower's salary. Co-borrowers or guarantors are needed to increase the chances of getting more loans.
- A large number of completed loan agreements. If their number exceeds 3-4, lenders, as a rule, do not agree to issue another new loan.
- work for individual entrepreneurs. Such an employer is not reliable, therefore the borrower is at risk of losing his job and not returning the debt to the bank.
- Having a criminal record.
- Lack of a landline phone.
In order not to be refused a loan, it is important to exclude these factors or where customers are more loyal.
When can I submit a new application?
Each bank has its own terms, after which you can re-submit an application for consideration. In most cases, the period is 30-90 days. You can apply earlier if the borrower has changed the terms of the loan and eliminated the reason for the refusal.
If a loan at Sberbank was denied, how long does it take to submit a new application?
At Sberbank, you can apply for a re-examination of the loan application after 60 days. If you send an application earlier, there is a risk of being rejected. An application can be submitted earlier than the deadline only on the basis of a new type of loan and taking into account the changed conditions.
Can I immediately apply to another bank?
If one bank is refused, the client has the opportunity to take a loan from another institution. But this is not always a good decision, since a refusal in one organization is recorded in the borrower's CI and is available to another lender when checking a potential client.
Why not apply for a loan to several banks at the same time?
The lender sees this as the client's desire to arrange several loans at once and receive the maximum amount, which raises suspicions and may indicate the borrower's questionable financial position.
However, not all banks are so critical of multiple applications. For:
- Post Bank,
- Renaissance Credit,
- Citibank,
- Loco Bank,
- SKB-Bank does not matter how many applications the borrower has issued.
Clients are given the opportunity to apply online for a loan to all banks. The difference will be that some financial institutions will make a preliminary decision, while others will make a final decision.
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