Some clients have their loan applications denied because of poor credit history. The same applies to those who do not have any credit history since banks do not have the means to determine clients’ capability to repay the loan. Other factors that can cause banks to deny your application include a lower salary (does not meet the income bracket) and the existence of several unpaid loans.

It is also worth noting that banks make sure that your repayments do not go beyond 60 percent of your net income. However, the good news is that banks have several ways of determining a client’s creditworthiness. If one bank has denied your application, this does not mean that you will experience the same fate with other banks.

In case a bank refuses to grant you a loan, you have another chance to borrow money from a licensed moneylender. Remember that your application remains subject to the institution’s approval, and your ability to repay the loan will be evaluated based on your credit rating.

Usually, during the loan application, licensed moneylenders will do a search on the Credit Association Singapore (CAS) web portal to check the borrower credit reports provided by the Moneylenders Credit Bureau.