Learn How To Reject A Loan Application Politely

How To Reject A Loan Application Politely
Not every individual is qualified to get a loan. When you use the 4506-T verification tool, you'll find that some loan applicants' income is not enough to justify the amount of loan they want to get. So, the only thing you can do is reject their request.

But while it's your responsibility to deny their application, you should also keep in mind that some of these people are really having a hard time financially. So, if you're going to deny someone their loan request, the least you can do is to let them down easy. Below are three polite ways to reject a client.

Be Cordial But Not Misleading

When someone comes up to you for a loan, that person may have tried to muster all their courage to ask for financial assistance. In a way, that person feels vulnerable as a result.

Try to remember that when you're speaking with them. When you reject their application, what you can do is to tell them that you understand how difficult their situation is, but at the same time, you have to be clear that your company can't help them.

While you have to be polite, it's important that you don't give your clients any false hopes. So, be careful with the words you say because even something as harmless as "I'm sorry, but we can't do anything for you right now," could be misconstrued as a statement that you can help them later.

Provide Alternatives

If a client doesn't get approved for a loan request, you can help them by providing them with alternative solutions. But again, be clear that the solution will come from somewhere else.

For example, since you've taken a look at your client's income and financial background, you can surmise how much they can save up for whatever purpose they have for the loan. What you can do is to give them some advice on how to effectively save money, like removing their cable TV for a month or avoiding dining out every weekend for a change. This way, your client won't feel like there's no hope.

Help Them See The Light

Finally, don't let any of your clients leave without hope in their heart. After giving them some ideas on how to save up, you can tell them that if they are able to save enough money, they will be able to improve their financial status.

Maybe they asked for a loan because they were trying to pay off another loan. If that's the case, tell them that by saving enough money, they could ask for a smaller loan or they might even get to avoid taking out a loan.

The point here is that people asking for loans are in a very vulnerable state and they need your help to regain some hope in their hearts. So, rather than bluntly informing them that their loan application is rejected, try to be kind and let them leave your office with a more positive attitude because if they can't get their loan, at least they have hope.
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