Why do SME loans get rejected?

Why do SME loans get rejected?

Default payment, late payment, court judgment and even a lack of financial history may result in a poor credit score. Monitor your personal and business credit score before submitting your SME Financing application. If a low credit score is the reason you are turned down, review your score and take steps to repair.

What are the requirements for equity loans?

Qualification requirements for home equity loans will vary by lender, but here’s an idea of what you’ll likely need in order to get approved:

• Home equity of at least 15% to 20%.
• A credit score of 620 or higher.
• Debt-to-income ratio of 43% or lower.

How does equity Bank calculate loan limit?

Hi Ednah, you are able to confirm the loan limit you are eligible for right from your Equitel line. To check on your loan limit, go to Equitel SIM tool kit–>My Money–>Loans–>Loan Limit–>Eazzy loan after which you can go ahead and make your application.

Why would a bank reject a business loan?

One of the most common reasons behind a business loan being rejected is that its business credit rating is lower than the lender feels happy with. – Try to take out some form of business credit, whether that is a business credit card or even an overdraft. – Always pay bills and credit repayments on time.

Why do banks reject loans?

Typically, lenders have a threshold credit score below which they will not lend. “Banks usually require a credit score of at least 650 or more for sanctioning a personal loan. If your score is below this threshold, the bank may reject your application. Typically, NBFCs have a lower credit score requirement than banks.

How long does it take to get an equity loan approved?

The truth is that home equity loan approval can take anywhere from a week—or two up to months in some cases. Most lenders will tell you that the average window of time it takes to get a home equity loan is between two and six weeks, with most closings happening within a month.

What percentage of equity can I borrow?

Depending on your financial history, lenders generally want to see an LTV of 80% or less, which means your home equity is 20% or more. In most cases, you can borrow up to 80% of your home’s value in total. So you may need more than 20% equity to take advantage of a home equity loan.

How much loan can I get from equity?

Depending on your financial history, lenders generally want to see an LTV of 80% or less, which means your home equity is 20% or more. In most cases, you can borrow up to 80% of your home’s value in total.

Which bank has the lowest interest rates in Kenya?

Cheapest Bank loans in Kenya

1. Central bank of Kenya. The central bank of Kenya (CBK) has the benchmark as the best lender with 9% interest rate.
2. Victoria Bank. This is one of the cheapest banks that offer loans at a subsidized rate.
3. KCB.
4. National Bank of Kenya.
5. HDFC Bank.
6. Stanbic Bank Kenya.
7. HF Group.