How do I get my loan approve by the banks?

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This is the hottest topic nowadays. I have talked in numerous states and also countries. The questions are always the same.

How do I get my loan approve?
Why the banks is are rejecting my loan?
Is there any way I can get approval?

You have read in the newspaper, magazine or even seen on TV our banks rejection rates are very high. Less than 5 cases been approved every 10 cases submitted to the bank. In some banks rejection is as high as 70%. What is happening? Is the banks not lending anymore? Or the market is really bad so the banks pull out in lending to you. All this lingers in our mind. Some don’t even dare to buy because they are worried or they are pretty sure the banks will reject their loan.

Who is to be blame? Shall we blame Bank Negara, the banks or ourselves? If we talked Bank Negara do you know that our tightening policies are one of the most lenient in the world. As for the banks they are a profit making organisation. Do you think they will lend to someone with the likelihood of late payments? The loan borrowers on the other hand the debts are high. For your information, Malaysia is one of the highest in terms debts. Out household debts is as high as 87% and it is climbing at alarming state. You don’t meet the banks criteria that is why your loan is rejected.

Let me enlighten you. I have been in this industry for the past 19 years. I have been around during the good and bad times. Even during the bad times there are banks who are willing to lend. You must know where to go for submission. Gone are the days where you submit to your documents to the banks and expect the banks to approve the loan. You will need to prepare first.

Firstly, know yourself (KYS). You must know where you stand in the eyes of the banks. There are 3 things that you need to do when you apply a loan with the bank. You cannot miss out the following step. It will assist you to take charge of your loan.
1. Check your Credit Tip Of System (CTOS) . You can check online now
2. Check your Central Credit Reference Information Systems (CCRIS).You can check with Bank Negara.
3. Check where you are standing now using Debt Service Ratio (DSR). You must learn how to calculate your DSR.

If you were to submit too many documents your loan will be rejected likewise if you were to submit too less documents your loan will be rejected also. Submit what the banks wants. Different banks wants different documents. You must know what documents are needed.

My humble advise to everyone, start your financial planning now.

From the Desk of

Miichael Yeoh

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