I have heard such a complaint from many people. They feel that since they have been saving with a given bank, they are obligated to get loans whenever they need them. Well, your bank would want to provide you with all the financial services. However, at times you might not get a loan for these reasons:
- Financial Inconsistency
Banks might not give you a loan when there is no consistent cash flow to and from your account. They use the consistency in cash flow as an indicator that you are their consistent customer. Imagine a case where you opened your account with the bank and deposited 100$. Three years down the line, you have never withdrawn or deposit more cash into the account. Such an inconsistency cannot allow you to get a loan. If you ever think that you will ever want a loan, ensure you use your account and let several activities appear in the mini-statement.
- Unpaid loan with other lenders
How do you think you will convince your bank that with other unpaid loans, you can take more and pay within the located period? It is even worse if the period you are supposed to pay the outstanding debt has elapsed. No bank wants to risk losing its finances to bad debtors.
You first have to show interest in paying your current debts before insisting on getting a loan from your bank.
- Bad debt listing
Every stage has agencies that work with money lenders to keep loans paid. If you become a bad debtor, you may be listed with such agencies. What they are communicating is that any other lender should give you a loan at their own risk. You can be sure no bank will lend you in such a case.
You have to keep a culture of paying debts.