How To Beat Unapproved Loan Application Team Team

Last updated 19 April, 2019


'Updated 15 January 2019.

You have your plans set, your goal seems within an arms reach and all you need now is that RM50,000.00 to make your dreams a reality. So what do you do? simple. Apply for a personal loan and that's exactly what you did. few weeks down the road this is what you hear.

Dear Patrick,

We regret to inform you that your loan application with us has been rejected.

And now all you hear now is glass shattering.

While the banks’ credit checks, risk profiling and credit lending policies may vary slightly from each other, the real culprit could often be something hidden and easily overlooked. Lets take a look at some of the reasons why your loan may be rejected.

Why Was Your Loan Application Rejected?

The truth is, you're not the only one that suffers this fate!

Therefore, let us recap your experience- You have shopped around for the best deals on personal and business loans, asked friends and family for recommendations and even decided to browse the internet to find that “perfect” loan to suit you and your financial situation. Seems like the perfect plan to cover all the bases and make an air-tight application. Yet, it still leads to a “REJECTED” stamp.

Now, let’s try and clear up why this happens.

Why Did The Banks Rejected Your Application?

Banks are financial institutions that receive deposits from customers and then uses these deposited funds to lend out to other customers that need a loan. In return the bank receives interest payments from the borrower but also takes on more risk.

So let us look closely at this situation: If you were a bank, would you lend out your customers money to someone that provides an unnecessary higher risky by having unpaid credit cards, bad credit history and no balance in their savings account?

Your immediate answer would be “No”. With that being said, you can now understand the banks philosophy that they only lend to people that have a strong track record in order to get the trust that they will get their money back.

Solving The Problem

So you’re probably asking: What can I do to make sure my loan gets approved? There are a few options to reassure the bank that you are able to repay.

1. If you’re applying for a business loan- the easiest option is to first raise capital without borrowing any money. This reassures the bank that you won’t default on your loan because the bank’s loan will always get paid back first before shareholders equity.

See also: Personal Loans and Credit Cards: A Powerful Duo For Your Business

2. If you’re applying for a personal loan- make sure that your personal finances are in order first. This means that you have;

  • No outstanding credit card expenses, which could have a high interest rate.
  • A savings account balance of more than zero.
  • A good credit rating.

3. If you’re applying for either a business or personal loan- it is imperative that you have reviewed your own financial situation, because otherwise you will waste time by applying for loans that you’ll never get. If your current financial situation isn't good enough- take some time to build up a better financial position for yourself before you apply for a loan.

Remember, put yourself in the shoes of the banks; Maybank, Hong Leong, Standard Chartered, CIMB, UOB, Bank Islam, RHB, Ambank. Therefore, you can evaluate yourself before you apply for a loan and waste time by getting rejected. is here to make your life easier by saving you time and money on comparing business and personal loans!




(Video courtesy of All Gadget Buzz YouTube channel)

The team is comprised of many talented individuals, sharing their knowledge, experiences and research to help others make better financial decisions.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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