Banks are always willing to do business especially when it comes to loan but there are some reasons why banks won’t give you loan. They build relationship with their customers over a period of time in order to know if these customers are worth doing business with.

Some reasons why banks won’t give you loan are discussed below, follow these advice and getting loan from banks will get easier for you.


Your character
You cannot predict people’s character unless they’ve been tested; some banks have been victims of this situation. These banks give loan to their customers believing they will pay back as at when due but it doesn’t happen like that. That’s when banks know the true character of their customers. Customers with character issue might be capable of paying back as at when due but they prefer to delay payments until they are being put under pressure by their bankers. You might have had an experience like this before whereby a friend comes to you for funds and promise to refund you in two weeks time but your friend doesn’t keep to his promise after two weeks and then you will need to spend your time and money just to get your friend to pay back.

When you see traits like this you will know that person is not of good character and not willing to pay back the loan he took. You will not be willing to give loan to such a person again because you’ve known the person’s character, that’s same way banks operate too.

If you want to get loan from banks, you should be someone who is willing to pay back and not your bankers forcing you to pay back. You also need to be consistent with your words and actions.

Your statement of account
You see a lot of business people walk into banks wanting to access loan facility; they claim they’ve been in business for long. But when asked to provide their statement of account, they don’t have anything to present. So, how do you believe such people have been in business for long as they don’t have anything to show for it?

Some of these people are actually telling the truth but still it’s hard to believe them if they can’t prove it. These people prefer to do their transactions without involving banks in order to avoid bank charges or to reduce the tax they pay.

This is why it’s advisable to always do your transactions through banks, so you can have an accurate record of your business transactions. Doing banking transactions are now made easy with the availability of online banking. That means you don’t need to get to your bank to do transactions as you can do it from your home.

Do all your business transactions as often as possible through your bank, you can also use internet banking so as to have an accurate record of your transactions.


Your line of business
Another reason why banks might not give you loan is because they do not support your Line of business or you are requesting for a wrong loan package for your business.

Take the right loan that supports your business. When you want to access loan, make sure you request for the right loan for your business. For instance a customer requesting for term loan for importation business, it might work but it’s not the best option for your business.

You might need to seek advice from your banker or a consultant so as to know the best loan package that works for your business.

Your credit history
There are some customers that seems to be good, these customers request for loan from their bank, they seem to meet all requirements needed to access loan. The bank sees good potential in them only for the bank to carry out search and find out these customers have bad loan with another bank.

Well, sometimes this might happen due to negligence on the customer’s side. Probably he had almost paying off his loan at the other bank but didn’t monitor the repayment properly. But most times these customers purposely do it, they get loan from one bank with the intention of not paying back then they move to another bank to do same thing. What some customers actually do is borrow loan from one bank and use it to repay for loan they’ve gotten from another bank.

My advice is do your best to maintain a good credit history, fund your account so loan repayment can be deducted easily and as at when due


Purpose of loan
You will see some businessmen requesting for loan because others are doing it. This set of people don’t know the purpose for which they want to access loan, they just want to get the loan first then they will decide on what they want to use it for later. Banks won’t do business with such people because the probability of them defaulting is high.

Another thing you should avoid is diverting loan funds for other purposes as this can lead to loss of funds and might make it difficult to repay the loan.

Know the purpose for which you need loan. You should know the purpose for which you want to access loan and stick to that purpose so as to achieve your goal. Focus really helps in business as it helps achieve the desired results you want.

You should know that sometimes security will be needed from you in order to access loan, depending on the loan package you want to access. You can also access loan without security depending on the type of loan you want. Banks will tell you their requirements when you want to get loan, once you meet those requirements, they can do business with you.

Basically what banks want to know is your capability and willingness to pay back the loan. Once you can prove yourself, banks feel more comfortable to do business with you.

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