Loans are the main source of income for banks. However, this does not mean that the bank will willingly give the necessary funds to everyone who applies for a loan. There are many reasons why credit institutions refuse to issue loans.
Issuing a loan for a bank is not only earning income in the future, but also a certain risk. To reduce it, banks first of all check the solvency of a potential borrower. It all depends on the amount the client needs and on the amount of his salary. In order to receive a consumer loan, you need to submit an income statement. True, some banks issue loans without it, but the risk payment in the form of an interest rate in them is quite high. When applying for loans for the purchase of cars or mortgages, the borrower is checked more carefully. In addition, to ensure the client's solvency and reduce its own risk associated with the issuance of funds, the bank requires a surety. If there is no one to vouch for you, then this will be the reason for refusal to issue a loan. The most common reason why banks do not issue loans is the presence of a negative credit history of a potential borrower. These can be overdue payments on existing or repaid loans, violation of the terms of loan agreements or collateral agreements, for example, the client's late submission of a report on the intended use of credit funds. Reasons for refusal to issue a loan may be an unstable source of income, short work experience in the last place, provision inaccurate data in the client's questionnaire, for example, concealing the fact of a valid loan agreement, the presence of a large number of dependents. In addition, when communicating with a potential borrower, bank employees pay attention to his appearance, demeanor, attitude towards the representative and the process of filling out documents. Inappropriate behavior, careless attitude to the process of paperwork - all this can cause a refusal to issue a loan at the first stage.
