The main reasons for a refused loan

loan refused

Your file is complete and yet the bank refuses to grant you a loan? This situation is usually a source of great frustration. To amplify your annoyance, the financial organizations will not give you the reasons for this refusal. However, many reasons can lead to a loan being refused. Find out which ones in this new article.

Strict rules for granting credit

Be aware that banks do not decide randomly whether or not to grant you a loan. Financial organizations find interest in granting credit, for them it is a reason to earn money. However, they are forced to place some conditions in order to be sure that this loan is profitable for them.

Outraged consumer credit law, each bank has their own internal guidelines for assessing a customer's credit application. When lending money to a customer, lenders calculate how much they will earn and what is the likelihood that the loan will not be repaid. During this credit check, the bank can decide to reject the application if the risks are too high.

For confidential reasons, the reason for the refused loan is unfortunately not communicated. It is then difficult to be able to increase your chances of taking out private credit without knowing the reasons for the refusal.

We are therefore going to tell you here the different reasons for a refused loan!

The main reasons for a refused loan

Before going through the different reasons for a refusal, you can also contact our specialized team who will answer your questions free of charge 7/7 days directly on WhatsApp.

In case of refusal, do not multiply your requests!

Also note that in case of refusal, it is strongly advised not to multiply your requests. This will have the effect of blocking any chance of obtaining funding thereafter due to the ZEK registrations which will accumulate.

The ability to repay your credit in 3 years

To contact a private loan, you must be of legal age. You can not get a loan before your 18and birthday. In addition, you must be able to repay all of this credit within 3 years (it is not a question of repaying the loan within this period, you must only be able to do so). Otherwise, your request will be refused.

Lawsuits involve a refused loan in the majority of cases!

This is a sign of non-payment. be the subject of a pursuit is very penalizing for obtaining credit. For the banks, this is indeed a very bad sign. They may refrain from granting you a loan if you find yourself in this situation.

Insufficient pay

If your salary is not proportional to the amount of your loan, financial organizations may refuse your credit application. They will consider that you will not be able to pay the monthly payments of your loan properly. Optimize your budget is therefore always very important before applying for private credit.

loan refused

Unemployment or a trial period

Banks may refuse your application if you are unemployed. The same goes for people on probation. Indeed, during a trial period, the employment contract can be terminated with 7 days' notice. For lenders, this situation represents a risk. The payment of your remuneration may be interrupted overnight, which could have a strong impact on the payment of your monthly payments.

Negative ZEK entries can also result in a declined loan

Before accepting a loan application, lending organizations check the ZEK (credit office) if your history shows a negative code. If so, you risk getting a refusal. The Credit Information Center allows you to check, among other things, your payment habits (fraud, card blocking, irregular payments, etc.).

Loan refused when you are a young boss

Starting a business is a dream, but banks may be reluctant to give you credit. This, especially when you start your activities. Indeed, if you have been self-employed for less than a year, then lenders will have difficulty estimating your earnings every month.


Grant a credit to retirees is very risky for banks. Indeed, it is impossible to seize the benefits of the first pillar of the AVS. If the retiree is unable to pay his monthly installments, then the financial institution will not be able to recover his funds.

Disability insurance or social assistance

If you are receiving a disability pension or social insurance benefits, your application may be refused. Indeed, these annuities cannot be seized in the event of non-payment of your credit. In addition, some banks systematically refuse to consider claimants as beneficiaries of annuities.

What to do in case of loan refusal?

Do not panic ! There are solutions and Lica is here to help. You can contact us at any time for free assistance. Make your contact request using the following button:

Now that we have seen the main reasons for a refused loan, let's look at how it is possible to remedy this situation. Each case has its explanation and its solution!

Insufficient ability to repay credit

In this case, no miracle possible! You will have to review your budget and possibly contact a bank that makes a more advantageous calculation of your expenses. Lica is precisely there to avoid this type of situation by guiding you towards realistic and accessible solutions.

Retirement, disability insurance or social assistance

In these three situations, the problem is always the same! As annuities and benefits cannot be seized in the event of non-payment of your private credit, banks are very strict on the conditions of acceptance. Here too, the best solution will be to work on the budget and send the request to a bank that is more flexible in terms of budget calculations.

loan refused

Unemployment or a trial period is not necessarily a reason for a loan being refused!

Patience is the key word in this situation! You will have to wait until the trial period is over or wait until you have resumed a professional activity. In this case, however, it is worth considering a request with another member of your family. This will increase your budget and the bank could thus obtain all the desired guarantees. Once the loan is granted, remember to insure your monthly payments in the event of unemployment !

In case of prosecution

In any case, you will have to repay your debts before you can take out a loan. In certain exceptional situations, however, it is possible to obtain credit with one or two proceedings. In this case, the best thing to do is to contact Lica to analyze your situation for free before applying for private credit.

In case of bad scoring

Take advantage of our solution CleanData ! You will be able to benefit from the following services:

  1. Obtain your personal information
  2. Understand the reasons for a refusal
  3. Have your data cleaned when possible
  4. And finally, get the desired financing.

The CleanData pack is charged CHF 69.- but refunded if it does not allow you to obtain your credit!

For the self-employed there are also solutions!

Although private credit will certainly be refused during your first year of practice, be aware that this is not the only solution for obtaining financing. As a neutral and independent service provider, Lica also offers you very interesting alternative solutions such as the business credit.

A loan refused? Lica is here to help you!

There are many reasons why a bank may refuse your private credit application. However, even if your application has been rejected by many establishments, there is no point in rushing to dodgy loan offers. On the market, there are many proposals that do not mention any conditions or criteria for obtaining credit. Loans without a credit check are often a scam to avoid. By making the wrong choice, you could be scammed and lose a lot of money.

If your request is refused, apply without delay for Lica

Now that you have all the information to avoid errors related to a refusal of private credit, take the time to contact our specialists to find a solution. Although it is always unpleasant to receive a negative response, you can count on Lica who will accompany you confidentially in your steps.

Do you have questions before making your request? Our advisers are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!

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