With everyone feeling the effects of a declining world economy particularly for people residing in Singapore, the process on getting a cash loan from banks and other traditional lenders becomes more stringent than it was years before.
Statistica shows an inflation rate of .91 percent for Singapore in 2017. A forecast by ECA International stated that real wage increase is around 2.9 percent, which is a positive outlook compared to the global economy.
However, Singaporean loan applicants are still getting their loan applications rejected. The sad part is that they stop the loan process after the first rejection and experience difficulties that would have been avoided if they have found the proper resources or went to a non-traditional way of securing a loan.
Here are a few things why your loan got rejected and how to avoid getting rejected. Read on.
Too Many Loans or a Disorganized Financial Record
Having multiple loans can impact your standing with banks negatively, and we are not only talking about your capability to pay back the loans. This propensity to get loans is usually a red flag on the spending habits of a loan applicant.
Having two or three lenders for different loans is acceptable, but having three banks giving you the same kind of loan will not be taken in a kind light by the banks that you are applying to.
How do you rectify this? By consolidating your loans. Tying up all of your loans to just one provider not only lessens your fees, but it also makes it more convenient for both the lender and debtor.
Your Income Stream is Not Easily Analyzed
This usually happens when you are self-employed or your income is passive. Self-employment means freedom from the corporate world and a passive income would mean financial prosperity. However, for banks, it means more human resources to tap so that an accurate forecast of the income can be properly done.
That is why, sometimes banks and other lending companies can be lazy to look at your income stream. And since there are so many loan applicants, without a good history or relationship with the bank, you will have a harder time to secure the loan.
How do you take care of this issue? You have to ensure that your documents and income statements are clear and in order. If you are having some problems with this, ask for assistance from an accountant or bookkeeper.
If you are in need of a cash loan that is quick, convenient and with very reasonable rates, you can contact us and get a good deal, be it a personal loan or a business loan. We are called Fast Money for a good reason!