Why Necessary Loan Application Is Not Approved


The reasons for the rejection of the consumer loan application mostly stem from the information that the banks obtained as a result of their intelligence.

No Credit?

bad credit loan

Bank officials evaluating loan applications made to them;

  • Determining the risk level of the applicant,
  • Determining the solvency of the applicant

He wants to work with customers who will not find it difficult to repay the loan they have used as a result of their evaluations. In these evaluations, there are some basic reasons underlying negative response in loan applications.

Unless there is an intervention to correct the related causes, knocking the banks’ door in cash needs will not yield results. In this article, we have gathered for you which points the banks pay attention to in their loan applications, what they use as a determinant and what should be taken into consideration in order not to get a negative response from the banks.

With the information in our article, you can be a person whose applications to banks are accepted and even wanted by banks to work with them.

What is the Effect of Credit Rating on Approval Process?

credit score

Commonly, low credit rating is the leading reason for rejection of consumer loans. The credit rating is a score type in which the applicant’s risk level and payment habits are measured.

  • Credit card usage,
  • Use of credit,
  • Existing credit and credit card debts,
  • Plus balances on the term / demand deposit account

The banks are given a score by the banks with such deterministic effects and this score range is compared from the list below:

  • 700 – 1099 Medium Risk
  • 1100 – 1499 Low Risk
  • 1500 – 1699 Good
  • 1700 – 1900 Very good

Your current credit rating is requested by banks to be in the least risky group at worst and close to the upper limits of the group in which it is located. Before the consumer loan applications, the credit note learning process should be completed by using the existing methods, and the loan application information should be compared by comparing the information obtained from the table above.

What is the Effect of Black Listing on Approval Process?

The Credit Registration Bureau, established by banks, is a system used by banks during their intelligence process during the approval process to store and evaluate credit information. The existence of evaluations made by banks after each loan and credit card application can be clearly understood by the number of KKB applications. According to the information received from the relevant institution, the application loan applications of the applicants included in the group called black list with irregular payments made in the past period will encounter a rejection response. To fall into the black list;

  • Credit card,
  • Credit

Legal proceedings should be made by not paying their debts for at least 90 days. If the applicant has not followed legal proceedings in their past payments, the application for consumer loans is not rejected due to the black list.

If you say ” How Can I Find Money?” I recommend you to read our topic.

What is the Effect of Unapproved Loan Applications on Approval Process?

Successive loan application is a development that causes the credit rating to decrease. This mistake, which is usually made by people who want to try their luck at the same time, causes the applicant to appear high in the risk level and receive a rejection response in consumer loan applications.

First, after comparing the conditions of banks for general purpose loan applications, an application should be made to a single bank, and then an answer should be sought when the excess loan applications made in the past are deleted from the system. 180 days must pass for excessive loan applications in the past. If there is a rejection response you received in the previous period for re-application, make sure that this period has expired in order to apply for a need loan again.

What is the Effect of the Calculation Based on Your Payment Power on the Approval Process?

What is the Effect of the Calculation Based on Your Payment Power on the Approval Process?

Applicants wishing to use consumer loans also need to undergo a questionnaire of income applied by banks. Along with the loan calculation made by presenting documents showing the monthly income status to the banks ;

  • Existing debts,
  • Being married or single,
  • Whether to have children,
  • Whether the house you live in is a rental house

The payment power determined with the monthly installment amount of the loan applied is compared. To give an example, if the assessment made by the bank according to the income level, the person can pay a maximum monthly installment of 1,500 TL;

  • 18.000 TL for 12 months,
  • 36.000 TL for 24 months,
  • 54.000 TL for 36 months

Payment plans are prepared that will not exceed the amount. It should not be forgotten that there is an interest amount with the principal in the given limits, and the monthly installment amounts and the income level should be compared according to the interest rates of the banks by using credit calculation tools before the loan application.

What is the Impact of the Approval Process of the Consumer Loan Application with Missing Documents?

A number of documents are requested for consumer loan applications to banks. Although some banks do not request documents from their customers online, in applications made from the branch in general;

  • Copy of identity card,
  • Electricity, telephone, internet or water bill arranged by name,
  • Document showing monthly income,
  • SGK service breakdown,
  • If necessary, collateral or mortgage documents

It is requested. It is known that applications for consumer loans made in case the related documents are not completed will receive a rejection response in accordance with the procedure of the bank.

During the application, after confirming all the documents both from the bank’s website and from the branch employee, you must complete your application documents and submit them to the bank branch.

What is the Effect of Mortgage or Collateral Deficiency on Approval Process?

What is the Effect of Mortgage or Collateral Deficiency on Approval Process?


  • The negativity observed in the credit registry,
  • Low credit score

For such reasons, an immovable property or vehicle demand may be encountered during the loan approval process. At this stage, the loan amount to be used by banks;

  • 50%
  • 70%
  • 75%
  • 80%

The mortgage with the value corresponding to such rates must be displayed on the immovable or vehicle to be displayed. In order to determine the value of the related goods shown as mortgages, the experts of the banks perform the valuation process. If the value of the immovable property or vehicle desired to be presented as a mortgage does not correspond to the amount requested by the bank during these expertise studies, the application for the general purpose loan may encounter a rejection response.

Banks have difficulty in giving credit to many people for many reasons or you will be directly rejected. If you have had problems with banks before, it becomes more difficult to get credit. For this, it is a little easier to apply and get credit with banks that give easy loans or banks with no guarantors or banks that provide instant loans. You can calculate the loan amount you want with the Consumer Loan Calculator on our site.

We recommend you to read our previous article titled What are the Housing Loan Cost Items. You can browse the topics that may be of interest in our Mortgage Credits category.

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