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Loan refusal! You want to take out a loan and the bank refuses to follow you. Does she have the right? For what reasons ?
Yes, and without justification
A bank does not have to justify a refusal and is entirely free to grant or refuse a loan. On the other hand, if she has made you a loan offer and you have signed an agreement, she cannot go back.
It cannot discriminate on personal criteria: race, religion or sexual preferences.
In this case, you could file a civil or criminal complaint to order the bank to pay you compensation.
The “myth” of 33%
There is no legal framework concerning the debt ratio. This rate can be 30% or 50%. The bank makes this calculation according to your salary but does not have to justify its refusal on this principle.
Organizations that never refuse
There are organizations that have more flexible criteria than a bank. But you have to keep in mind that if the banks refuse you a loan, it is most often on objective criteria. It is therefore necessary to think carefully before taking out a loan from one of these organizations following the refusal of a bank because this loan can lead you to over-indebtedness.
When applying for a loan, it is essential to know your bank’s rights, as they have the power to approve or reject your loan application. Several factors influence their decision, including your credit history, income, debt-to-equity ratio, and overall financial stability.
If your bank refuses your loan request, it is crucial to find out the precise reasons for its decision. Understanding their rationale can help you take the necessary steps to improve your financial situation and increase your chances of approval in the future.
Remember that a loan refusal is not a final refusal; you can explore other loan options or work to strengthen your financial situation to better qualify for loans in the future.
