What To Do If Your Loan Application Gets Rejected?

[Good-Guy]

Borrowing money is something that many people do on a daily basis. I remember visiting a bank and I found that there were many people who used to visit the branch of the bank on daily basis so that they could get a loan. Of course not all the people get the loans. Some parties get their loans rejected due to bad credit history, not having enough valuable assets to give to it to the bank as mortgages, and some other big issues that involve getting their application accepted. The very first question you should ask yourself is: why would any bank or financial organization approve your loan in the first place? Is my mortgages valuable enough?

Do I have a great credit history? What would convince the bank or financial institution so that they could approve my loan? Have I prepared the documents in a proper way? What are the legal aspects when it comes to getting loans? These are some basic things that you need to ask first. Even if after all this, if your loan gets rejected, then I think that you must try to understand the basic reason for that and ask the manager for guidance. Many banks are actually willing to give loans because they earn interest and they only seek their own benefits. They do not actually care about the other party.

 

[Kingsley]

Am not a very big fan of those that subscribe to accessing loans to either start a business or maintain a business because of the risk involved in paying back the loans mostly when things goes wrong, one may lose everything at the end. It is even more worse mostly if the business is seeking the loan for a start up. But when the situation on ground seem as if it is the last resort then I will advise one to thread very carefully to aviod any kind of problems that may arise.

So in a case when one gets rejected for a loan one has applied for then it will be best to seek for help from family and friends, and if this also seems abortive then it will be better to seek for other investors thay will be willing to partner with other like minds. This will boost ones moral as profit will be shared equally and one wil, and one will enjoy the advantage of working with other people thay has a similar vision and aspiration so ideas will be shared and this will mark the stress one would have had as a sole proprietor to reduce to the bearest minimum.

 

[btaliat]

Having loans rejected may be a sad news especially for someone that doesn't have many alternatives. The person may end up losing his business ideas because of lack of fund. However, if such thing happens, the following are next steps to take.

First, there is need to know the reason for the rejection. For some banks, it may because the person doesn't have strong collateral, it may because the person doesn't have a good financial reputation among other reasons Having know these, then one can be working towards amending the ones that are amendable.

There is need to look for alternative too. Remember, loan is not the only way by which money can be sourced for business. There are other ways as well. Those alternative like borrowing from friends and relatives can be considered and even working harder to increase personal saving may be a better option.

 

[Abigael]

Getting your loan application rejected is truly one thing that happens a lot. This is because of so many reasons. If it happens to you, your first move should be finding out what was the reason for the rejection. Which can fall under instances such as;
1. Having a negative credit history.
2. Not having proper or all documents needed.
3. Not having enough proof of ability pay back the loan.
4. Your collateral may not be good enough for the loan you are taking.

After finding out the reason for your rejection, you can find out if there is anything you can do to change the situation. Things like not having enough documentation can be changed by looking for the documents needed and presenting them. Also, you can choose a better collateral if that is the case. And you can show the loan lending institution your other assets like an established business you have to proof to them that you are able to pay back the loan.

On some occasions like having a negative credit history. There is pretty much nothing that you can do to convince the company to lend you money. Therefore, you should be flexible enough to let it go and look for other sources of the money you need. You can take up a new job or sell something that you don't use anymore.