Avoid Your Loan Request Getting Rejected With These 5 Simple Steps

Avoid Your Loan Request Getting Rejected With These 5 Simple Steps

Avoid Your Loan Request Getting Rejected With These 5 Simple Steps.

Getting a loan at the appropriate time can be one of the best things ever. It relieves your heart from stress and worry.

Taking a personal loan is one of the easiest ways to secure short-term finance.

 However, people’s hopes come crashing down when their loan application is rejected. This can happen for mild or strong reasons.

 Loan rejection is not a good thing and this is why you should know how to avoid it.

Don’t worry, this article is here to help you out.

5 Simple Steps To Avoid Loan Rejection

These are some of the things you should take note of: 

  1. You Have Meet The Credit Requirement:

Credit requirement is one of the basic and important factors that a lender will consider before granting your loan request.

Also, each lender or lending platform has its credit requirements.

It is necessary to check your intended lender’s credit requirements to know what credit score you need.

If you want to know more about credit scores, check out my other articles.

You also need to ensure that your credit score is high as it increases your chances of getting the loan. 

  1. Meet Your Lender’s Income Requirement:

Every Bank or lending platform will ask for your income before proceeding with the loan. Your income is very important.

Always note that your lender has a required minimum income and if you do not meet it, your loan amount will be reduced. Not necessarily canceled.

This income requirement is to ensure that you can financially pay back the loan at the stipulated time.

Some loan companies in Nigeria will go as far as asking for your employment history for a certain period, to be sure you have a stable source of income and to see your income itself.  

  1. Have an Equivalent Collateral:

Your collateral is a valuable asset whose worth matches your loan. It is your pledge and it can be taken if you forfeit to pay your loan. 

When applying for a loan, your lenders will ask for your collateral as a guarantee because it lowers the risks they face.

To avoid a declined loan application, provide collateral whose worth equals your loan. 

  1. Debt-To-Income Ratio:

All of the previous factors have a part to play in your Debt-To-Income ratio. 

It is a way of measuring how much you can afford to borrow. 

If your debt-to-income ratio is high, it means that you are borrowing more than you can pay, which is not good. If it’s the opposite, then you’re good to go.

Before you apply for a loan, try to clear your outstanding debts as most lenders will check your credit history before considering your request. Also, ensure that your Debt-To-Income ratio is less than 43% if you don’t want your application to be rejected.

  1. Make Sure You Have All The Required Documents:

The documents your lender will expect you to provide include; your bank statements, bank payslips, a copy of a valid ID, a letter of undertaking, and any other specified document requested by your lender.

Fill in the correct details and you should have an easy loan process.

Always verify your documents before submission.


These are not the only factors that will help you avoid a loan rejection. You can check my other articles to learn more.

Above all, before you apply for a loan, you should research your lender.

Good luck!