Successful Loan Application

You have found the right property and placed the booking fees.

You search for the right financing package from the banks and found a suitable one.

You compile your income documents and details of the property, fill up a housing loan application form, and submit the form to that friendly looking bank officer.

7 days later, you recieve that letter, saying that “we regret to inform you that your application…”.

Your application for a loan has been DECLINED!.

Banks, although always eager to sign up new customers, have their own lending criteria which governs the approval of loan applications. But what are these criteria, and how do you meet this criteria? What do banks look out for?

Here are some common (although not exhaustive) list of criteria used to evaluate your credit worthiness:

  1. Your employment
  2. Your income
  3. Your commitment and Debt Servicing Ratio
  4. Your property
  5. Your internal credit record
  6. Your credit report, the CCRIS report

As a general guide, the following table highlights what Banks usually look to when evaluating a particular loan; be it a Housing Loan, Vehicle Loan or Personal Loan. Different products means different qualifying criteria, for example, you might apply for a Housing Loan and a Credit Card, but only one of the product is approved. This is because different criteria is employed for different products.

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6 Comments (+add yours?)

  1. Maha
    Apr 23, 2010 @ 17:37:38

    Hi Amir,

    This is the first time I came through such a wonderful advice on loan application. I wrote this to thank you for all the info that you shared regarding financing.

    My hubby tried to refinance our current property but has been rejected. I don’t know the reason. Now we are trying in another bank but if the answer turns out to be the same then we will proceed to Bank Negara to get the CCRIS report.

    Thank you,
    Maha

    Reply

    • Amir
      Apr 25, 2010 @ 20:28:17

      You are welcome, Maha. Having worked in various banks starting from sales all the way up to product development, I deal directly with both customers and the Bank’s management. I understand the frustrations that consumer may face if their applications get rejected. I too am a consumer first, banker second. I am just trying to tell the Bank’s view to lending so that normal folks like us can have a better success rate for our loans.

      I sincerely wish you and hubby the best of luck in the application. There is always a solution to every problem.

      Cheers

      Reply

  2. Azree
    Aug 17, 2010 @ 17:30:53

    Amir,

    Saya telah disenarai hitamkan dari membuat pinjaman kerana menjadi penjamin kepada seseorang. saya ingin membuat pinjaman dari pihak bank bagi menyelesaikan tunggakan pinjaman yg saya disenarai hitamkan tu, blh x? sebab nilainya terlalu besar. baru2 ni ada pegi ke bank negara untuk dapatkan laporan CCRIS, so far bayaran ok. cuma yg kecewa sbb masih takleh buat pinjaman gara-gara senarai hitam tu..ada cara x untuk tlg? saya bekerja swasta..

    Reply

    • qilamonster
      Aug 17, 2010 @ 18:36:02

      Hello Azree,

      Susah sikit situasi Azree….selagi hutang senaraihitam itu belum di langsaikan, rekod buruk sebagai guarantor sukar di keluarkan. Selagi ada senaraihitam, bagaimana bank akan meluluskan pinjaman? Chicken and egg….

      Satu cara yang boleh dipertimbangkan ialah berbicara dengan pihak bank untuk minta tunggakkan tersebut dipindahkan ke nama Azree. Tapi ini bermakna Azree akan melepaskan tanggungjawab peminjam asal, samada Azree sanggup berbuat demikian. Ini bermakna segala bayaran lewat, bayaran principal dan jumlah tertangguh akan diambil oleh Azree.

      Langkah terbaik ialah untuk berbicara dengan Bank jalan penyelesaian terbaik. Kalau boleh, restructure pinjaman tersebut kepada satu pinjaman yang senang di urus…

      Maaf saya tak dapat memberikan advise selain dari ini.

      Reply

  3. Sham
    Sep 03, 2010 @ 02:19:38

    salam, sy nk tahu cmna nk hilangkan CCRIS tu hari da la buat loan gan Public Bank tapi gagal walaupun Pihak Ambank telahpun keluarkan satu surat mengatakan bayaran telahpun di buat. ini adalah pinjaman kereta tu hari tunggak 4 bulan. tapi PB x nk terima, blh tak tolong bgtahu cmna caranya, sy betul2 nk pakai duit ni.

    Reply

    • The Hotspot
      Sep 03, 2010 @ 06:10:56

      Hello Sham,

      Sukar jugak tu, sebab bank mempunyai hak untuk menolak permohonan pinjaman jika mereka merasakan kurang confidence, berdasarkan rekod lalu. Keputusan tetap di tangan mereka, dan agak sukar untuk mengubah kriteria kredit bank.

      Mungkin perlu mencuba dengan bank lain? Jangan putus harapan, teruskan berbincang dengan pihak bank untuk mencari penyelesaian.

      Semoga berjaya.

      Reply

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