Credit requirements got stricter - how do you even get a loan from a bank now?
What changed? Do you need a bigger salary now, a better payment history, or something else? Does this apply to everyone or just certain groups of people?
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Banks have definitely become pickier, but mostly on the standard criteria: salary, job tenure, credit history. Where they used to approve with minimal paperwork, now they want proof of income and they check for missed payments. This mainly applies to consumer loans and mortgages, but with salary-backed loans at some banks it's simpler - the main thing is being a customer and having regular income. If your history is in the red or your income is unstable, try microfinance organizations, though the interest rates there are brutal.
Which bank have you already approached or are you just planning to? The thing is, requirements really do differ even within the same institution - it all depends on what product you want to get and when you're applying.
Yes, banks have gotten stricter about salary and work experience, but the main change is they're now more actively looking at your current debt to other creditors, not just your payment history. If you already have loans, a mortgage, or missed payments on credit cards, getting a new loan will be harder, even if you used to get approved. Plus a lot of banks have introduced limits on loan amounts based on your income - sometimes even with a good salary they can turn you down for a larger sum.
Here's what matters and people often miss: pay attention to your debt-to-income ratio. If your monthly payments on all your loans and debts add up to more than half your salary, the bank might just reject you without explanation, no matter how good your history is. This applies to everyone equally, regardless of your status - whether you're an employee, a self-employed person, or something else. The only exception is salary account holders at a specific bank sometimes get better terms when they apply through their employer's payroll program.
Try checking your credit score beforehand using specialized services - many of them offer a free report. If everything's in order there, you're unlikely to run into rejections even with tougher criteria. But if your credit history is shaky, it makes sense to build it up first - take out a small loan for three or four months, pay it back carefully, and then go for a bigger amount. This works way better than trying to storm the banks with a clean slate, because just one or two small successful transactions and you become a more attractive borrower to the system.
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