The credit institution reserves the right not to disclose the reason for refusal to provide. This right is given to her by current legislation. All banks, without exception, use this right when considering applications.

A borrower who has received a refusal to formalize an agreement is interested in having the reason for the refusal announced. The advisability of contacting other banks depends on this. But there is no point in demanding information from the bank.

The scheme for assessing borrowers and the level of loyalty of credit institutions are different, but typical reasons for refusing to provide a loan can be outlined. Which one is relevant is determined personally by the borrower after assessing his situation before contacting the bank.

Difficulties in making a decision on the application

The ability to submit online applications for almost any loan product has caused an increase in the overall customer flow. Banks process applications faster, which allows them to make preliminary decisions almost instantly. The borrower is only required to fill out the application form correctly and wait for the lender’s decision.

It is enough to meet the bank’s basic requirements, such as age and Russian citizenship, for the preliminary decision to be positive. If the borrower is not a citizen of the Russian Federation, does not have a Russian passport, or is not of suitable age, then he will receive a refusal at the stage of consideration of the online application. In this case, you don’t have to look for a long time for the reason.

The same rule applies to your permanent residence address. Most banks require that the applicant be permanently registered in the region where they operate. The reason for refusal on these grounds is usually obvious. It is enough to carefully study the description of the loan program regarding the requirements for the borrower.

Difficulties in determining the reason for the refusal arise when the bank first makes a positive decision and only then refuses to provide funds. For borrowers, such a scheme is not always clear, and the reason for refusal is interesting in each case. Let's take a closer look at the 11 most common reasons.

Reason 1 - Negative credit history

When processing an online application, this information is not verified in all cases. Firstly, the consent of the client himself is required here - a tick is placed under the application form. Secondly, credit institutions are interested in the applicant’s face-to-face application - this way they can always be offered to apply for another, simpler product. And finally, for small banks, applications may not be processed by a person, but by a special program, which in this part does not always work as relevant.

Credit history is considered as the main characteristic of a borrower. Based on the credit rating indicators, the bank evaluates the client’s reliability and even solvency. Refusal will occur in the following cases:

• There are long closed arrears.
• History shows long ongoing delays.
• Previously, delays arose as part of the fulfillment of the terms of an agreement with the same bank.
• One or more cases of judicial debt collection have been recorded.
• There are one or more existing agreements that have not yet been executed with this or a third-party bank.

The bank obtains the appropriate permission from the applicant to request information on the credit history. The data is sent to the credit institution within a few minutes. If the history shows any of the items on the list, then the application will be rejected.

An independent inquiry into your own credit history will help the borrower avoid wasting time contacting the bank and not succumbing to all sorts of dubious offers. You can do this for free once a year. All other requests within the same year will be paid - around 350-400 rubles.

Borrowers are aware of their credit history, so asking for it may not always be appropriate. It is almost impossible to get a loan with a bad credit history under standard programs. Therefore, if a borrower understands that his credit history is damaged, then banks will refuse him precisely for this reason, since it is considered paramount.

Reason 2 - Discrepancy between the requested amount and terms and the specified income

Credit institutions in the descriptions of their programs indicate maximum amounts that are available only to regular customers or those who have certain privileges when applying. For everyone else, the available amount will be less than the nominal amount specified in the program.

If the applicant’s official income is 30,000 rubles, and he applied for 1,000,000 rubles for 2-3 years, then he will be denied such an amount and under these conditions. The borrower will physically not be able to repay the debt amount with an official income of 360,000 rubles. Income that is expected to be received in the future is not of interest to the lender at this stage.

Therefore, it is always necessary to rationally assess your current capabilities and correctly compare the amounts with the terms of the contract. Otherwise, the bank will refuse your application. If there are no other reasons for refusal, credit institutions offer the borrower to adjust the terms of the loan so that their fulfillment is possible for the borrower.

For the convenience of potential borrowers, banks on their official websites have provided special loan calculators that help determine the available loan amount based on the income received.

Reason 3 - Lack of required documents from the bank's list

For a number of loan programs, banks provide a list of required documents, which, in addition to a passport, includes documents confirming solvency and information from the place of work.

If the applicant is unable to provide the documents specified by the bank, the application will be rejected. Such refusals are considered explicit or open - when the borrower understands perfectly well what caused the negative decision on the part of the credit institution.

Mention should also be made here of invalid or forged documents. If any document from the bank’s list turns out to be invalid, then when considering the application, the creditor will make a negative decision, without indicating the reason for its adoption.

If the document turns out to be forged, in particular, this applies to the passport of a citizen of the Russian Federation, then in this case the bank is obliged to report the forgery to law enforcement agencies.

Reason 4 - Detection of inconsistencies in the information provided by the borrower

The application can be submitted in two stages: online, indicating the basic details of the borrower, and in a standard form - by filling out a paper application. To obtain a loan from a bank, the borrower must provide only relevant information in both cases. Moreover, this information must match.

If the slightest discrepancy is detected, the bank will check the data again, and if the discrepancy is confirmed, the application will be rejected. If the borrower’s mistake is not intentional or gross, then the loan specialist will point out such errors and offer to make appropriate changes.

7 other reasons for refusal to provide a loan

Listed above are the most common reasons why banks refuse to issue a loan. In addition to these, there are a number of circumstances that, if taken into account, borrowers will be able to increase their chances of receiving a loan.

1. Problems with the law

Citizens with a criminal record have no chance of getting a loan. The probability is zero, since not a single Russian bank will cooperate with a convicted citizen. In this case, the category of the crime committed is practically irrelevant. If you have a stamp in your passport and information in the Information Center of the Ministry of Internal Affairs, it will be impossible to get a loan.

2. Work for an individual entrepreneur

A loan may be refused for borrowers who are employed by individual entrepreneurs. The fact is that working for an individual entrepreneur is considered by banks as not the most stable option for confirming solvency. The individual entrepreneur can close at any time, and the existing borrower will be left without income, which the credit institution is extremely uninterested in.

3. The indicated salary is much higher than the market average

Each occupational category has an average salary. If a mid-level manager contacts the bank and indicates a salary of 100,000 rubles with an average of 30,000 rubles, then the application may be rejected. A suspiciously high salary, even if all supporting documents are available, will raise doubts among the loan officer.

4. Working for a dubious company

Even officially employed citizens are denied a loan if the bank is not satisfied with the applicant’s place of work. Newly opened companies, shell companies, organizations engaged in dubious activities are immediately identified by the bank using a common database. Therefore, employees of such companies will be denied a loan if they have a full package of documents.

5. Several companies are registered for the borrower

There is a category of citizens in whose names legal entities are registered. These citizens may be listed as general directors, founders, or shareholders in these organizations, but, in fact, they have nothing to do with these companies. Banks consider such clients as unreliable, and in 99% of cases they refuse to provide a loan.

6. A short time has passed since the last refusal

When a credit institution refuses an application, simultaneously with the refusal, the borrower receives information exactly when he can apply again. The nominal period is 30 banking days. If the borrower receives a refusal and contacts the bank after, for example, 15 days, then his application will be automatically rejected. The decision will be negative even if the reasons for the previous refusal are eliminated.

7. Suspicious behavior / unkempt appearance

When applying for a loan in person, not only the client’s solvency is assessed, but also his appearance. If a potential client looks unkempt or behaves suspiciously, the application is more likely to be rejected.

: If none of the above reasons are relevant, but the bank still refused the loan, there is no need to waste time finding out the reasons for the refusal. There may not be any reason - even a client who is completely satisfied with the credit institution may receive a refusal of his application. The Bank may exercise its right of refusal in each case.

Obtaining a civil passport is the final stage of integration into another state. However, there are no guarantees in granting new citizenship even if all the necessary documents are available.

The legislation of any country provides for a number of reasons why a person may be denied citizenship of another country. Therefore, it is recommended to familiarize yourself with the probable reasons for refusal to obtain Russian citizenship before starting the integration procedure.

Reasons why citizenship may be denied

Today, many people from neighboring countries seek to move to Russian territory for permanent residence. Compared to other states of the post-Soviet space, the Russian Federation is distinguished by higher economic development and living standards of citizens. In addition, in this country it is much easier to find a job in your specialty and realize your professional opportunities. To achieve such goals, you will need to legalize your right to stay on the territory of the Russian Federation. However, it is important to understand that some individuals may be denied a Russian passport.

The main reasons for refusal to grant citizenship include:

1. The applicant, by his actions, provokes a political coup, or his stay in the country is not safe for other citizens.
2. A person wishing to obtain citizenship has previously taken part in extremist actions on the territory of other countries, or participated in armed conflicts in which he used force against members of the Russian Armed Forces and civilians.
3. The applicant previously took part in public events aimed at inciting religious or racial hatred, which threatens the territorial integrity of Russia.
4. When submitting an application, he deliberately provided FMS employees with false personal information or forged documents.
5. At the time of filing the application, he was a military serviceman or security officer of another state.
6. The applicant has an outstanding criminal record.
7. Anyone wishing to obtain Russian citizenship is wanted in another state or is being pursued by law enforcement agencies outside the borders of Russia in a pre-trial manner.
8. He is in prison.

The most common reason for refusal to grant Russian citizenship is the suspicion of employees of the Federal Migration Service and other competent structures of deliberately providing false personal data. If this can be proven, then the chance of obtaining citizenship even in court will be minimal.

Important! At the initial stages of the integration process, it is necessary to make sure that there are no reasons that may interfere with obtaining Russian citizenship. Of course, you can always file a lawsuit and wait for it to be resolved. This will require significant time investment.

Step-by-step procedure for appealing a decision

To file an appeal, you must present to the authorized structures a copy of the document setting out the reasons for the refusal to obtain citizenship. This certificate must be provided to the FMS upon request of the applicant. Within the framework of current international legal norms, every citizen has the right to protect his rights in court. It is possible to file an appeal both to regional authorities and to federal courts.

How to draw up a claim correctly

A statement of claim is a document on the basis of which the legal process is carried out. In accordance with Article 125 of administrative proceedings, the application must meet the following requirements:

• the document must be drawn up personally by the applicant by hand in legible handwriting;
• Key points should be indicated as basic information (full name of the judicial authority, general information about the applicant and defendant, information about violated rights, requirements for the defendant);
• The application must include the date and personal signature of the plaintiff.

In addition, the application should be accompanied by a package of documents that were presented to the FMS, as well as a receipt for payment of the state fee. When referring to a violation of rights in a statement of claim, it is necessary to indicate which of them were violated, based on international legal acts. The application must also be accompanied by a copy of the certificate received from the Federal Migration Service, which indicates the reasons for the refusal to grant citizenship. The original of this document will need to be presented in person in court during the process.

How documents are submitted

The claim can be filed either in person or with the help of an authorized representative. These include:

• parents or guardians;
• individuals or legal entities who have a legal basis for this (notarized power of attorney for the provision of interests).

The application can be sent to the appropriate court in the following ways:

• in person to the office;
• fill out a special form on the official website of the judicial authority;
• send by registered mail.

Important! If a hired lawyer will be involved in drawing up and filing the statement of claim, then his license and higher education diploma must be attached to the main package of documents.

Application review process

During the trial, the defendant must justify his decision to refuse citizenship. In turn, he or his legal representative must convince the court that rights have been violated, and then make a demand to cancel the previously made decision and satisfy the applicant’s request for Russian citizenship.

All arguments expressed in court must be supported by relevant certificates, other documents and norms of current legislation. Otherwise, the court will not consider them. If the evidence base is insufficient, then the trial will not lead to the desired goal and will entail useless financial expenses and significant loss of time. Therefore, it is extremely important to make sure that the FMS decision was biased and unfounded. To do this, it is recommended to seek advice from a competent lawyer.

Cost and terms

The cost of filing a claim for unlawful actions of the FMS is 18,700 rubles. In addition, you will need to pay a state duty, which is calculated in accordance with the Tax Code of the Russian Federation - 4% of the amount of the claim, but not less than 400 rubles. You will also need to pay for a lawyer’s services and issue a power of attorney, on the basis of which the lawyer will be able to represent the applicant’s interests in court (2,000 - 3,000 rubles depending on the region). Prices for lawyer services vary from 40,000 to 70,000 rubles. If successful, you will need to pay a premium of 10% of the claim amount.

When the application is submitted to the court, a decision will be made within 3 days to consider the case. If the claim was drafted incorrectly, the start of the trial will be denied. The hearing date is set by the court. Under current legal regulations, the start of court hearings must begin within 2 months from the date of filing the claim.

What to do if you are rejected when applying for temporary residence permit, residence permit and citizenship?

Upon receipt of a refusal to grant a temporary residence permit, residence permit or citizenship, each person has the right to appeal the decision of the Federal Migration Service in court. It is important to remember that filing a claim is possible only within 3 days from the date of receipt of the relevant notification from the federal authority. It is important to first consult with an experienced specialist who has the status of a lawyer, higher specialized education and experience in the field of migration law.

Statistics from such trials indicate that only in 20% of cases the court recognizes the decision of the Federal Migration Service as unlawful and satisfies the plaintiff’s demands. Therefore, it is extremely important to sensibly assess the possibility of challenging the decision.

From this video you will learn for what reasons foreign citizens may be denied a residence permit:

Conclusion

Denial of citizenship is not a death sentence. Everyone has the right to defend their rights and file a claim in court within 3 days from the date of receipt of the notification of refusal from the FMS. Consultation with a competent specialist who has experience in litigation specifically in the migration field is mandatory.

Attention!

Due to changes in the legislation of the Russian Federation, the information in the article may be out of date! Our lawyer is ready to advise you free of charge - write your question in the form below:

Issues of payment, early repayment, return of insurance and the like are relevant for those who were given a loan. If the bank refuses a loan, then the person is primarily interested in the reasons for this.

We will tell you why a negative decision may be made on your application and what to do if you are denied a loan everywhere.

Common reasons for loan refusal

Some are rejected because of a bad credit history, others because of its absence. Someone is already overburdened with such debt that the payment exceeds their salary, and someone takes out a mortgage without even having a credit card.

Any of these people may be denied a loan without explanation. In fact, this is exactly how bank employees usually answer the question of why a consumer loan was denied.

However, there are the most common reasons for loan refusal.

Low solvency

If you have a small official salary, then they will give you a small loan. Or they will refuse to lend you funds altogether.

What is considered low solvency? Each bank has its own opinion on this matter, but traditionally it is believed that after paying the monthly loan installment, the borrower should have an amount left equal to the subsistence level. If a person with a child applies for a loan, his salary should be enough to cover the child and adult subsistence level and pay off the loan.

If you are denied due to low solvency, find out from the bank whether the terms of the loan provide for the involvement of a co-borrower. For example, in Rosselkhozbank, Sberbank and others, you can make any person a co-borrower; he does not have to be a relative.

A co-borrower who is not a close person can even be brought into a mortgage loan. This does not mean that he will receive half the apartment. He will simply be jointly responsible for his obligations to the bank.

If you don’t want to take on a co-borrower, you can offer the bank a guarantor. This person will not be a borrower; the bank will only ask questions about him if you, for some reason, stop paying the loan.

Bad credit history

There is little you can do in such a situation. The most logical option is to contact a not-so-well-known bank, which has a simpler approach to selecting borrowers.

If you are not ready to take out a large amount at a high interest rate, we suggest that you at least get a credit card and actively use it for several months. After this, you can either close the card or keep it and pay off the debt.

The most important thing is to avoid delays on this card, because then you will not achieve your goal. Carefully making payments, try after the moratorium on filing an application after a refusal has expired, contact the first bank again. The likelihood of approval will increase, because now the latest information about you in the BKI is positive.

No credit history

If you are a young person who recently started working, then you have probably never taken out a loan. And this could be a negative factor for the bank. If a person has previously taken out a loan somewhere, then the bank, having received information from the BKI, can form an idea about the borrower.

For example, he will know how often loan arrears occurred, whether the client repaid the loan ahead of schedule or exactly on schedule. Based on this information, the bank will begin to assume how accurately such a borrower will pay off the new debt.

And if a person comes without a credit history, the bank has no way to judge how disciplined a payer he will be. If the amount is small, the bank will be able to take a risk and give money. And he is unlikely to risk a large sum.

Buying household appliances on credit can help in this case. The amount will be quite reasonable, the overpayment is small. We recommend paying according to the schedule, not ahead of it, but also without delays.

Good credit history

It sounds paradoxical, but even borrowers with a good credit history are denied a loan. For example, those who take out loans over and over again and pay them off ahead of schedule.

The bank, when providing money to clients, expects to receive interest for their use over a certain period. And if the loan is repaid ahead of schedule, then the bank’s plans are violated; it receives less income than expected.

Therefore, sometimes they refuse clients who, having taken out a loan for 5 years, pay it back in a year. So we recommend that you do not close loans too quickly, otherwise problems may arise in the future.

Your appearance and behavior at the time of application

There is such a thing as scoring. In accordance with this system, the credit inspector must evaluate the potential borrower and give him a certain score on a number of indicators.

If an employee writes in his assessment that you came to the bank while intoxicated and swore, it is unlikely that you will be given money.

If you speak competently, are decently dressed and generally make a good impression, then the likelihood of your application being approved will increase.

How to find out why your loan application was rejected

It is very difficult to find out the reason for a bank’s refusal to grant a loan, since any borrower’s application states in fine print that the lender has the right to refuse to provide the required funds without giving reasons.

Often, even bank employees do not know why a positive or negative decision was made. They can only guess.

The most common reasons for refusal are presented above. If you were rejected, it was most likely due to one of them.

If the payment is almost equal to your salary, then this is the problem. If you've never bought anything on credit before and now want to get a multimillion-dollar mortgage, the reason is that you don't have a credit history. If you have existing loans in several banks, and you do not pay on any of them, then they will not give you money.

Whatever the reason, you are unlikely to know it for sure. Although if it is refused due to low solvency, then you will most likely be informed about this.

Simply because solvency can change significantly even over a short period of time. For example, you change jobs, and in six months the loan, which today absorbed your entire salary, will not exceed 30% of it.

If, for example, you have not passed the bank's security check, then you will never know about it.

What to do if your loan is denied?

Even if you don’t know why all banks refuse to issue a loan, you can improve the situation.

First, review your credit history. Once a year you have the right to do this for free. True, for this you need to contact directly the source of information, that is, the BKI.

Few people know how to do this, so it’s easier to go to a bank. There probably is an opportunity to get your file from the credit bureau. This service is always paid, since the bank acts as an intermediary.

Secondly, try to close all your existing loans. If you have several of them, then the balances for all are different. Somewhere you need to pay another 100,000 rubles, somewhere 50,000, and somewhere only 10,000.

Since you are applying for a loan, it can be assumed that you do not have any free money. However, we still recommend finding funds to repay at least the smallest loans. Borrow from friends, for example.

When trying to close a loan, do not resort to the services of microfinance organizations. Often, after borrowing from them, they have to go to the bank to pay off the huge debt.

If you suspect that the reason for the refusal was the presence of an overdue debt, try to pay it off. You took out a loan, seeing the amount of the monthly payment, and found it acceptable. So you can afford it. In addition, due to constant penalties, you end up paying much more than you could if you made payments carefully.

Conclusion

To sum up all that has been said, we can conclude that there may be many reasons for a bank’s negative decision, but the main reasons for refusing to receive a loan are your financial situation or your reputation as a borrower.

Your employer sets your salary, but only you create your credit history. And you can adjust it at any time. Naturally, information about arrears and debts will not disappear anywhere, but if a year ago you did not pay the loan, and since then you have not missed a single payment, most likely they will give you a loan.

Therefore, if you are denied a loan, try to understand why this happened. And then change what the bank didn’t like for the better.

Why do all banks refuse loans? This question often causes confusion among those who have applied to a financial institution for financial assistance. It would seem that there is a permanent job and a stable income, but not all financial institutions meet potential borrowers halfway.

The current legislation enshrines the provision that the banking structure has the right not to disclose the reasons why the client was not given funds, and many banks take advantage of this. As a result, a person who really needs cash is forced to rack his brains and try to figure out why his application was given a negative decision and the bank refused the loan.

Tightening lending rules

Nowadays, getting a loan is not so easy, and this applies not only to loans for consumer needs, this also includes mortgages, as well as car loans. The main reason for this situation lies in the change in liquidity in the banking environment. That is, given the current economic situation, banks simply do not have enough money to give it to everyone in need.

When an organization experiences a financial shortage, it curtails or limits its lending programs, since in order to give money to the borrower, it needs to have some reserves. However, credit institutions cannot refuse to give loans at all.

There are enough applicants for financial assistance, so we have to introduce more stringent conditions for issuing the required amounts and be much more demanding of potential clients. A fair question arises: how to get a loan for consumer needs if all banks for some reason do not approve even bona fide borrowers.

How banks make decisions

There are two main ways in which a particular candidate for a loan is considered. In the first case, the banking structure uses a special scoring system; in the second, the borrower’s responses are analyzed by in-house credit analysts.

Scoring is based on a point system, where each answer in the questionnaire is assigned a certain number of points. The more points scored, the more likely a person is to receive approval and money. Thus, the scoring program will give greater preference to clients:

• married;
• female;
• aged 25 to 35 years;
• having no or no more than one child;
• living in their own apartment;
• with an average and high level of income and more than a year of work experience.

If, after automatic scoring, there is preliminary approval, but the contract has not been automatically concluded, specialists from the analytical department are involved. Their competence includes communicating with relatives and former employers, as well as collecting other valuable information about the client that can influence the decision. In this case, clients with a positive history in lending are considered. Those who already have a bad credit history are eliminated at the scoring stage.

Possible reasons

Potential clients may be tormented for a long time by the question of why banks refuse a loan, where to get funds and what to do in such a situation. However, there are main reasons that may influence the decision of a financial worker:

1. Borrower's age. Many banks stipulate that the minimum age of the client is 18 years as a condition for obtaining a loan. However, not all organizations comply with this provision. This is explained quite simply: people of this age, as a rule, do not yet have solid ground under their feet and permanent employment, they take many things lightly, and young men can be called up to serve in the army at any time. Individuals aged 18-20 and pensioners over 60 have the least chance of getting a loan. In the latter case, there is a risk of non-repayment of the amount due to deterioration of health and death of the borrower. However, age is not a 100% basis for refusal. There are banking organizations that willingly provide financial assistance to young entrepreneurs.
2. Damaged credit history. This reason can be classified as one of the main reasons why the loan was refused. If a borrower does not fulfill his loan obligations on a regular basis, he is automatically classified as a person with a high probability of non-repayment of funds. A bad history does not always mean late payments. When considering the application, the borrower’s compliance with the terms of the previous lending agreement is taken into account.
3. Zero or too good credit history. A person who takes out a loan for the first time is checked more carefully: the bank cannot know whether the potential borrower will take future payments with full responsibility - he has nothing to compare with. In the case of a credit history that is too good, the bank’s motivation is that the borrower is too impeccable in financial matters, which means that the loan will be repaid very quickly with possible early repayment. Oddly enough, such clients are extremely unprofitable for the financial structure, because it is impossible to make a good profit on them. Money will most likely not be given to such a client either.
4. The loan amount is too large. The bank always relies on the information provided on official income. It is believed that the monthly loan payment should not exceed 40% of all available financial sources. If the requested amount exceeds this figure, then a decision is made to refuse.



5. Lack of adequate security.
   Collateral is a kind of guarantee for the bank. Its main types include collateral or guarantee, and if the borrower can provide them, the chances of a positive response increase. So, if the client does not own real estate, land, a prestigious car and other material goods, the loan may be denied.
6. False information and forged documents. The fact of providing false information and “fake” documents is very quickly established by the banking organization. At a minimum, the client may face refusal, and at maximum, criminal liability for forgery of documents.
7. Having existing loans and too much debt. Many banks set a limit on the maximum number of loans that a borrower can have. As a rule, if a client has taken out more than 3-4 loans for which he is obliged to pay regularly, the decision on a new loan is not made in his favor. The same may apply to having a credit card, especially if you have more than one. Bank specialists consider credit cards as full-fledged loans.
8. Work for an individual entrepreneur. Small businesses are considered to be unstable and unreliable, and applicants whose employer is a sole proprietor are at risk of losing their main income at any time.
9. There is no landline phone. Despite the fact that humanity has almost completely switched to cellular communications, having a landline phone at work or at home is strongly encouraged, and in some banks it is even one of the mandatory requirements. According to the credit institution, this fact will confirm that the borrower has at least some employment, even if there is no landline telephone at home.
10. There is a criminal record. Even people with an expunged criminal record can be denied a loan. At the same time, bank security officers will consider not only the fact of its presence, but also the elements of the offense.



11. Employment. Availability of a place of work is certainly one of the most important factors when making a decision. However, work and work are different. So, banks do not give a loan if the applicant has seasonal earnings, his income is unstable, etc. In addition, experience will also be important. Most banks consider borrowers who have been working at their current job for at least six months. In addition, a possible reason why a loan was denied could be a constant change of jobs.
    

    Some lending institutions discriminate against professions that involve risk. This may include employees of the Ministry of Emergency Situations, the Ministry of Internal Affairs, firefighters and other emergency services. The thing is that such employees are much more likely to be at risk and at any moment can become disabled or even die.

    However, if the client agrees to issue an insurance policy, the bank that initially refused may reconsider its decision.

12. Unclear goal. Despite the fact that advertising offers are full of headlines “loans for any purpose,” in reality, not every bank will be ready to issue cash for every purpose. Thus, you should avoid citing the desire to repay another existing loan as a reason. The same applies to a loan to start a business. For these purposes, there are loan offers with a different package of documents.

Hidden Reasons

There are several other reasons why a bank loan is not given. For example, an applicant, when submitting applications to different organizations, provides different information. Decision makers can compare the data obtained with those available at another bank: discrepancies are often found. In order to avoid possible risks, such persons receive a loan refusal. The same thing happens if the applicant is on the so-called “black list”.

They get into it for various reasons: banks simply do not want to cooperate with “complainers”, “scandalists”, malicious defaulters, as well as overly principled clients, limiting themselves from resolving unnecessary issues. These types of reasons for refusing a loan are called hidden, and they often arise due to subjective assessments. This category also includes:

1. Untidy appearance of the potential borrower.
2. The presence of serious diseases.
3. Low score based on scoring results (a special computer program that gives a subjective assessment to the borrower).
4. If, during an audit, it turns out that one of your relatives is an unscrupulous borrower, the credit institution may consider you as such.
5. Absence of a mark on completion of military service or deferment of such completion. If a borrower is recruited to serve in the army, the bank risks incurring losses.
6. The absence of a life insurance policy may also be a reason for refusal, since for many credit institutions this is another financial service; in addition, life insurance will protect the institution from the possible death of the borrower. Despite the fact that, by law, this service cannot be imposed by the bank, and you have the right to refuse, this very reason may be a stumbling block in receiving funds.
7. If the potential borrower is a pregnant woman or on maternity leave. For banks, this is a very unreliable category, although such an absolutely “discriminatory” reason will never be voiced to you.

What to do if all banks refuse a loan

What should a borrower do if, for unknown reasons, all banks have refused, and how can one find out the real reason for the refusal of a consumer loan? As already mentioned, the bank has every legal right not to report it. However, the Credit History Bureau (BKI) stores such data for 15 years. Any citizen of the Russian Federation can apply there and obtain information about the true circumstances: upon initial request, information is provided free of charge; upon repeated request, you will need to pay from 500 to 1200 rubles.

A situation in which credit is denied everywhere, although far from common, is nevertheless quite possible. Most likely, this indicates that you have a very bad credit history, but other hidden factors may also be the reason. To understand the true motives, contact several different credit institutions to obtain more accurate information on your lending history.

A thorough analysis can help you figure it out. So, your credit history may well contain inaccurate information on some previous loan, which could happen as a result of a technical failure. For example, you know for sure that you have closed this or that loan a long time ago, but it is listed as open in the file, or all loans have always been repaid without delay, but they are in the report.

If such gross errors are found, you should immediately contact the BKI with a corresponding statement. In addition, you will need to attach all the necessary documentation to support your words. This could be photocopies of payment orders and cash receipt orders, or a certificate from a bank whose loan has long been closed.

Another option is to contact professional credit brokers who can conduct a detailed analysis of your lending history and point out points that may confuse banks. In addition, such a specialist can give valuable recommendations on how to correct the situation that has arisen and can even suggest where it will be easiest to borrow money.

Procedure in case of refusal

If the bank does not give a loan, do not despair. Use these tips to increase your chances of getting the required amount:

1. Submit loan applications to as many financial institutions as possible, where you have not yet tried to get cash. This can be done quickly enough by using the official Internet resources of banking institutions. In this case, the chances of receiving approval increase many times over; not all banks refuse.
2. If the reason for refusal is unclear, you should try to take out a loan secured by real estate; banks are more willing to consider such an application.
3. Carefully calculate the possible maximum monthly payment: you need to take into account all monthly expenses, including the cost of living for each family member, taking into account those who may be dependent on you. The remaining amount should not be less than that planned for the loan, ideally it should exceed it by 50%. If the condition is not met, you should reduce the loan amount.
4. If you urgently need a small loan that you can repay within a month, it makes sense to consider taking out a microloan from a microfinance organization or contact reputable banks that do not refuse urgent loans even to difficult clients. As a rule, almost 100% of borrowers who apply receive approval. However, it is worth considering the presence of an increased percentage in such institutions.
5. To improve your credit history, you can take the following steps: either not take out loans at all for 15 years, then it will start with a clean slate, or, conversely, take out short-term consumer loans as often as possible and repay them in good faith - after some time, your history will turn into positive category.

Situations when a borrower is refused a loan are quite common. At the same time, financial institutions do not always provide explanations about the reasons. Most often we are talking about a bad credit history or the client’s non-compliance with the bank’s requirements. But there are other options why a loan is denied without explanation. In this material we will consider the main reasons for refusal, and also consider an alternative that is available to all citizens of the Russian Federation.

The most common reasons for loan refusal

Each financial institution has a number of requirements for clients. If the borrower does not meet any criteria, he will be rejected. Banks screen borrowers before approving a loan application, and the review can take up to several days. This is why experts recommend preparing before applying for money. You should study in detail all the conditions of the banking institution and make sure that you meet the stated requirements. Then the question of why HomeCredit or another bank refuses will not arise. So, what could be the reasons for refusal? Let's look at the most common ones.

The banking institution must be completely confident that the borrowed funds will be returned. Therefore, before approving a loan, the financial institution studies the client’s solvency. Some borrowers have a question: why are people with a good credit history rejected? Most likely, we are talking about low income. What also plays a role is how much work experience the person asking for help has in one place. Often the requirements indicate that continuous work experience in one place must be at least three months. This also provides a kind of guarantee of the client's solvency. The borrower must also provide proof of income in order to be able to receive funds. Without such a document they will refuse.

Credit history is an important set of data about his financial activities, delays in payments, debts for housing and communal services, and other data. During the check, the institution requests its CI from the credit history bureau. If it turns out to be bad, the person will be refused. How to find out why a loan is denied and whether the condition of the CI is the reason? To do this, you need to contact the BKI and find out if there are any gaps in your dossier that could lead to refusal.

Another reason why you are rejected may be that the client does not meet the lender's requirements. This is about:

• age;
• citizenship;
• having a stable income;
• family composition;
• state of credit history.

Most often, organizations cooperate with citizens who are over 21 years old. In some cases the threshold is even higher – 25 years. The upper age limit may be 65-75 years at the time of registration. Age in this case is also a guarantee of the client’s solvency.

As for citizenship, most often Russian banks cooperate with citizens of the Russian Federation. Of course, foreigners can also receive money. But they have a different procedure, a special package of documents and other requirements. You can learn more about this directly from the financial institution where a person turns for help.

Another reason why applications are denied everywhere may be that the borrower has a large number of dependent people. We are talking not only about minor children, but also about relatives with disabilities. For example, large families, mothers or single fathers are constantly frowned upon. Such categories are undesirable.

And, of course, we should not forget about a stable income and credit history. These points may be the key reason why Sberbank or another financial institution refuses a loan.

Incomplete package of documents or false information

When preparing to apply for a loan, you should carefully study the requirements that banks put forward to clients. This includes a package of documents. It should include:

• passport;
• SNILS;
• income certificate;
• additional identification documents.

This list may vary depending on which banking institution you contact. The absence of certain required papers may be the reason why a loan was denied.

When applying, some borrowers resort to tricks and frauds to increase their chances of receiving funds. Thus, some borrowers underestimate the number of dependents, exaggerate their income, or provide other false information. In fact, by such actions, borrowers do themselves a disservice, since they deprive themselves of the chance to issue loan funds. The check that Fin. the institution will conduct, identify all frauds, and issue money will be refused. Moreover, clients who provide false information about themselves may be blacklisted. Subsequently, this may be the reason why PochtaBank and other banking institutions refused a loan. Therefore, all the data that you submit when applying for a loan must be true, and then you will receive the money.

Uncertain purpose of loan

Before issuing a loan, they always find out about the goals pursued by the borrower. Especially if we are talking about large amounts. Goals can be different: buying real estate or a car, construction, opening or developing your own business, and so on. But if a person cannot explain why he needs money, they may be refused.

There is another reason why a bank refuses a loan - a goal associated with high risks. If a client takes out a loan for travel, for a friend, for plastic surgery, the funds may be refused.

In Western countries, banks usually explain the reasons for refusal. But how do you find out why Russians refuse a loan? After all, domestic financial institutions are in no hurry to give explanations on this matter.

According to experts, Russian banks have an unspoken law of non-disclosure. The fact is that experts believe that explanations of the reasons may lead to the fact that the borrower may bypass certain requirements during a subsequent application. Thus, financial institutions take care of their security and try to protect themselves from fraud. Another reason why the bank refuses an online loan without explanation is the economic situation inside. Trying to protect itself from excessive risks, a financial institution may refuse to issue funds.

Finally, experts note that in some cases banks refuse to voice the reason for the refusal on their own initiative. There is no statutory obligation to do this, so the client may not receive clarification.

Where to get money if the bank refuses

We looked at the main reasons why VTB or another bank refuses a loan to a salary client. Fortunately, there is an alternative to bank lending. We are talking about microcredit companies. You can get money here from the age of 18, and loans are issued for small amounts. These are non-targeted loans or online payday loans. They are issued at a fairly high rate - 1.5% per day. However, such a loan can help solve sudden financial difficulties. If banks refuse to refinance or issue loans, you can contact an MFO and receive financial assistance. Such companies have a number of advantages:

• completely remote online loan processing;
• access to money 24/7;
• minimum package of documents;
• no income certificate is needed;
• credit history doesn't matter.

Even those people who are considered undesirable by banks can turn to such companies for help. So, if Sberbank refuses a salary client, you can always apply for a microloan from an MFO. Of course, such companies also have a number of requirements. However, they are much simpler than those of banks, and the audience of MFOs is much wider. Our financial services portal will help you find the best offer from reliable and trusted lenders.

There is also the option of borrowing from private individuals. There are many offers of loans from private individuals on the Internet. However, this method is not always safe and there is a risk of facing fraud. If you turn to a private person for money, it must be a reliable and trusted person. The best option in this case would be a relative or close friend. But you shouldn’t apply for funds through dubious advertisements.

As you can see, there are many reasons why refinancing or issuing loans is denied. Most often, banks refuse people with low income or bad credit history. Also, the reason for refusal may be non-compliance with the requirements of the lender.

In one hundred percent of cases, borrowers who provide false information about themselves are refused. Such behavior is regarded by the bank as fraud, and the person may be blacklisted. Moreover, this will also negatively affect the subsequent lending activities of the borrower - other banks will also refuse.

If a borrower is refused by banking institutions, you can always contact a microcredit company and get a small loan. This solution is suitable for quickly solving sudden financial problems. You can get a loan from an MFO for a short period, so a fairly high interest rate will not be a problem. Even those clients who are most often rejected by banks receive a positive response from such companies. Our financial services portal will help you find a profitable offer from trusted microfinance organizations.