Top 7 Reasons Why Your Loan Applications Were Rejected

There are times when you apply for loans and boom, in a question of minutes, the loan is sitting pretty in your bank account and there are also times when you try and no matter what you do, you are not getting the funds. Why is this so? These are the things we are going to be talking about in subsequent paragraphs.

1. Ability to meet up with income criteria

One of the reasons why your loan application was rejected is that you may not meet the income criteria. Loan companies will want to know if you can pay back the loans you took and that is why during the process of application, there is a place where you give details concerning employment, date of salary, and the amount you earn. This is very important for the loan company as you cannot be earning less than the amount you want to borrow.

2. Past loan request rejections

There is a tendency that your loan application will be rejected if it was previously rejected before as every rejection has a way of affecting your credit report.

3. Incorrect details

The issue of incorrect details in loan applications is also a reason for rejections as this makes disbursement of loans to your account almost impossible. Loan companies want to be sure that they are giving out the loans to the right person who is capable of paying them back as and when due.

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4. Outstanding loans

If you have outstanding or unpaid loans from another loan company, there is a high chance that your loan applications will be rejected. If you are also a chronic defaulter in loan repayment you would be blacklisted from receiving loans in the future or and you will get a bad credit score. You must pay up all outstanding loans before applying for another one.

5. Disconnection in loan purpose

If there is a disconnection in the purpose of the loan, your loan can be declined as most lenders want you to know the primary reason why they are sending the cash to you.  

6. Eligibility requirements

If you don’t meet the credit or the eligibility requirements, your loan application won’t be approved. For every loan, there are requirements. Some lenders mandate you to be at least 18 years old, be employed, have a BVN, etc. before you can be given loans. If you don’t meet these requirements, your loan applications would be rejected.

7. Job instability

Lenders do not want to make the mistake of disbursing loans to someone who has no means of repaying the loans. If you are unemployed or you are a freelancer, your loan request might get rejected because it is assumed you don’t have a reliable income source.

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