personal loan application

Reasons why personal loan applications could be rejected

Many South Africans may have, at some point in their lives, applied for a personal loan, however, not everyone is successful in getting one. One reason for this is that the loan applicant could be over-indebted as a result of not being able to manage all their debt.


It is therefore important for credit providers to ensure that they apply best practice and credit lending regulations when it comes to granting loans to prevent consumers from taking on too much debt that they might not be able to manage. Here are a few ways in which credit providers ensure that best practices are applied:


  • Employment status: They will check if you have a permanent job. If your income history is irregular, a lender may be reluctant to provide you with a loan.

  • Bank account: They will check if the salary is paid directly into your account as well as when your salary is received. You must submit your latest payslips along with your application.

  • Affordability: When institutions assess your financial position, they check whether you will be able to afford to repay the loan. If your affordability is low, your application might be rejected.

  • Credit score: To improve your chances of having a loan approved, consumers are advised to focus on creating a stable financial position from an early age as a negative score could result in an application not being approved.


Partner with a credit provider that takes care of your financial wellness


As a caring financial service co-operative, Iemas offers free financial wellness workshops at all its participating employer groups. During these workshops, we provide practical tips on how to manage debt responsibly. Contact us to find out more: 0861 043 627.


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