Applying for a loan in the digitalization era like now is quite easy and fast. But not infrequently, we still often encounter many people whose loan applications are rejected for one reason or another.
We certainly do not want existing submissions to be in vain because they are simply rejected. Therefore, let's study some of the reasons for rejected loans through the following descriptions. Also, make sure you read it to the end to find out tips so that your loan application can be well received.
1. 6 Reasons Why the Loan Get Rejected
Even though the process is fast and practical, not all loans are definitely approved. The process of applying for a loan is not as beautiful and smooth as one might think. Sometimes, the reason a financial institution refuses to apply for your loan also seems unclear. There are several reasons why your personal loan was rejected.
Therefore, before applying for a loan, it's a good idea to pay attention to the following 6 reasons for a loan being rejected by a bank or non-bank financial institution. So that your loan application process can run smoothly later.
1.1. Incomplete Requirements
The reason for the first loan being rejected is the incompleteness of the requirements. As we know, complete requirements and documents are basic things that must be completed by customers when applying for individual personal loans.
Generally, the documents needed are personal identification such as KTP, KK, and others. As well as supporting documents such as NPWP, SIUP, and so on. Some financial institutions may require additional documents.
Therefore, when applying for a loan, make sure you have studied the terms and documents required by the lender. So, the application process can run smoothly, and save your time by getting the loan funds needed as quickly as possible. The reason is, if your documents are incomplete or inappropriate, your loan application will not be approved.
1.2. Poor Credit Capability and Record
Credit records are not the main determinant of your loan being approved or rejected. However, credit history is also an important factor to consider. Generally, financial institutions will look at your loan history and financial track record through the BI Checking or SLIK OJK process by measuring it through credit collectibility from columns 1-5.
If you have a poor track record in your previous loan application, then this could be the reason for the loan being rejected. In addition, through this checking process, financial institutions will also assess your ability to pay. This is checked through payslips, your company's profits, your income, and so on. If your credibility is judged to be poor, then your loan may be rejected to reduce the risk of bad credit.
1.3. Improper Warranties
When you apply for a secured loan, the value of the collateralized assets is also a determining factor in whether your loan will be approved or not. If the collateral value is not in accordance with the standards set by the creditor, then this could be the reason for the next loan being rejected.
So, when you want to apply for a loan, make sure that your collateral meets the criteria that have been set. Prepare assets that are more or less the same as the nominal funds that you will borrow.
1.4. Failed Verification
The fourth reason for a loan being rejected is verification failure. This generally occurs due to inaccuracy when submitting loan forms. For example, because the information you fill in regarding your personal number is missing 1 digit or the use of selfies is unclear due to low lighting. As a result, the lender was unable to contact you.
Therefore, to avoid verification failure, make sure you double-check the completed form before pressing the submit button.
1.5. Data Falsification (Fraud)
Every finance company has the authority not to process falsified data such as personal data, photos, or other supporting documents. Loan applications that are desperate to use fake data will be blacklisted and will be rejected automatically in the future.
So, make sure the data you are asked to fill in is correct and complete to avoid the reason for the loan being refused. You don't need to worry about the security of the data provided, especially if you apply for a loan from a trusted institution and have official permission. This requirement is used to see your ability to repay a loan or avoid the risk of fraud or default.
1.6. The Condition of the Financial Institution Itself
Finally, the condition of the financial institution itself also affects your loan application process. If certain conditions occur to them, they are forced to refuse your loan application. This is to prevent them from a more severe financial risk. For example, if their company is experiencing a business slowdown or an increasing non-performing loan ratio.
Those are the 6 reasons for rejected loans that are common around us. Next, let's look at some useful tips so that the loan you apply for is acceptable.
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2. Tips for Submitting Loans Without Being Rejected
Failure to apply for a loan is usually most often caused by data incompatibility or other trivial matters. In order to get cash, check out the following tips for applying for a loan without being rejected.
2.1. Read and Know All Specified Requirements
Reading carefully regarding the existing terms and conditions is a mandatory thing that you should not underestimate. If you do not understand what is written, you can immediately ask the customer service department at the financing company of your choice.
Another advantage of reading all of the existing requirements besides avoiding the reasons for the loan being rejected is that you can find out what benefits you will get later from the loan product you choose. Of course, this can be your consideration in comparing one finance company to another.
2.2. Avoid Data Falsification
Make sure the data you fill in is valid data and can be accounted for its authenticity. The data requested usually consists of personal information such as full name, age, address, telephone number, and email address.
In addition, lenders also often ask for supporting data such as nominal salary or income, name of place of work, emergency contact number, NPWP, BPJS, and other important files related to asset information used as collateral, whether it's a vehicle BPKB or a house certificate.
2.3. Make Sure Verification or Survey Is Smooth
In order to apply for an online loan without being rejected, you must ensure that the surveyor or lending institution can verify or conduct a survey of your home and office to ensure that the personal data provided is valid. Apart from conducting surveys or visits, verification is also carried out by submitting an OTP number or selfie (selfie) to ensure you are not using other people's data or falsifying data.
If in the submission process there is a requirement to take selfies or file photos, then take pictures in sufficient lighting, not blurry or blurry, and in accordance with the instructions given so that they do not become one of the reasons for the loan being rejected.
2.4. Borrow as Needed
Not a few people ignore this important point. In fact, the amount of the loan we submit can affect the status of the loan application. To avoid being refused a loan application, you can take advantage of the calculator feature which is generally provided by non-bank financial institutions and banks. This feature helps debtors see the maximum loan amount. So, prospective borrowers who wish to apply for a loan can find out the maximum loan amount and whether or not the loan figures submitted are in accordance with the submission criteria.
2.5. Improve Credit Score
The last is to improve the credit score. It is undeniable that in order to apply for a loan without a reason for the loan being rejected, you need to have a good credit history. In addition, the credit score is seen from how well you pay bills in a timely manner, have several credits, and have never failed to pay. Therefore, make sure you always pay your debts or bills on time to avoid running fines and dropping credit scores.
Those are some of the reasons for rejected loans as well as how to apply for a loan without being rejected by BFI Finance. For those of you who intend to apply for a loan guaranteed by a vehicle BPKB or a house certificate, you can apply for it at BFI Finance.