How do you know if your loan application has been successfully approved?

1. 6 steps to review unsecured loan applications

Unsecured loan applications are approved according to a clear and transparent process to ensure both customers and banks achieve optimal benefits. The specific steps to review documents are as follows:

Step 1: Receive documents

The approval process begins when you submit an unsecured loan application at a bank or credit institution:

• Customers prepare and submit documents: Including personal documents (ID card/CCCD, household registration), labor contract, salary statement, and other documents depending on the bank's requirements.
• Consultants do preliminary inspection: Ensure complete documents and information in accordance with unsecured loan conditions.

Step 2: Verify information

The bank or credit institution will check details:

• Verify personal information: Compare the information in the dossier with reality through channels such as calling to verify or checking locally.
• Income appraisal: Consider salary, monthly income sources, bank account statements or pay stubs.
• Check credit history: Look up information through the Vietnam National Credit Information Center (CIC) to assess credibility and ensure there are no bad debts.

Step 3: Loan approval

After appraisal, the bank will decide on the loan limit, interest rate and payment term in accordance with the customer's financial ability.

Approval results will be notified via phone, email or SMS.

Step 4: Sign the unsecured loan contract

If the application is approved, you will be invited to the bank to sign a credit contract.

Contract content includes:

• Loan amount.
• Interest rates apply.
• Loan term and specific repayment schedule.
• Terms and commitments of both parties.

Before signing, you should carefully read the entire contract, especially the terms on penalty fees, late payment interest or other additional commitments.

Step 5: Loan disbursement

After signing the contract, the bank will disburse the amount you registered.

Disbursement form:

• Transfer money directly to your bank account.
• Receive cash at the counter (if agreed in advance).

Disbursement time usually takes place within 1-2 working days after the contract is signed.

Step 6: Monitor and pay the loan

Customers need to pay on time according to the committed repayment schedule to avoid incurring penalty fees or affecting their credit history. 

2. Time for approving bank documents 

Time to review unsecured loan applications is an important factor that customers need to consider when choosing a bank or financial institution. On average, the approval time for unsecured loan applications usually lasts from 1 to 7 business days, depending on each bank's procedures and policies.

3. Signs that the unsecured loan application has been approved

The process of reviewing unsecured loan applications often makes many customers nervous and worried about the results. Please refer to the signs below and compare to check whether your application has been approved or not:

Sign 1: There is a notice from the bank

One of the first and most recognizable signs is a notice from the bank. After the application is approved, the bank will send information via:

• SMS messages: You will receive a message confirming that your loan has been approved, with details such as loan amount, interest rate, and loan term.
• Email: Some banks send emails with full information about the approval results and next steps such as signing a contract or receiving disbursement.
• Digital banking applications: If you use the bank's application, the approval results may also be displayed in the loan management section.

These notices are often official and detailed, helping you easily grasp the necessary information.

Sign 2: Bank staff contacts directly to notify

In addition to automatic notification channels, bank staff will also call directly to confirm the results. This is the clearest and most reliable sign. When contacting, bank staff usually:

• Confirm personal information and details related to the loan.
• Notification of loan limit, interest rate and specific terms in the credit contract.
• Guide you through the next steps, such as going to the bank to sign a contract or choosing a disbursement method.

Sign 3: Unsecured loan application information has the status "Approved" 

With the development of technology, many banks now allow customers to track application status online through applications or websites. 

If you see your application status updated to “Approved” or “Approved”, this means the loan has been approved by the bank. This is a quick and convenient way to check progress without waiting for notification from bank staff.

Sign 4: Receive disbursement from the bank

The surest sign that your unsecured loan application has been successfully approved is the receipt of disbursement. Loan money can be transferred directly to your bank account in case you register to receive a transfer or you can receive it directly at the transaction counter.

Normally, disbursement will be made within 24 - 48 hours after you complete signing the credit contract.

4. Possible reasons why the unsecured loan application is not approved

Although unsecured loans are a form of loan that does not require collateral, not all applications are successfully approved. If your application is rejected, check to see if your situation is facing some of the following situations:

Unstable income

Your financial capacity is an important factor for banks to assess the level of risk. If the source of income is not regular, not transparent or does not meet the minimum level required by the bank, the unsecured loan application will easily be rejected. 

Bad credit history

Credit history is looked up by the bank through the National Credit Information Center (CIC). If you have had bad debt or are slow to pay previous loans, the bank will evaluate you as being in a high-risk group, leading to your application being rejected.

Does not meet loan eligibility criteria

Each bank has its own criteria to approve customers for unsecured loans, such as the normal age range from 18 to 60 years old (or 65 years old for some banks) or people with labor contracts or working at large, reputable enterprises.

Missing documents or incorrect information

Missing required documents or providing incorrect information are common reasons for application rejection. Common errors include:

• Identification documents (ID card/CCCD, household registration) are unclear, expired or not original.
• Salary statement is invalid or does not match the declared income level.
• Incorrect personal information or missing signature on the registration form.

High debt ratio

Banks often calculate debt-to-income ratio (DSR) to assess your ability to repay debt. If you have many other loans and your debt ratio exceeds 50-70% of your monthly income, your unsecured loan application may be rejected because the bank is worried that you cannot afford to pay the new loan.

The reason is from the bank

Some cases where applications are rejected are not the customer's fault but come from the bank, for example:

• Banks change lending policies or tighten approval conditions.
• The bank's credit limit has reached its limit at the time you submit your application.

5. How to increase the chance of your unsecured loan application being approved

To ensure your unsecured loan application is approved, in addition to preparing all the correct documents and information, you need to have some strategies to help increase your chances of successful approval.

Build and maintain a good credit history

Credit history is the most important factor banks use to evaluate your ability to repay debt. A clean credit history will help you score points with the bank. To maintain a good credit history:

• Payment on time Current loans and credit cards.
• Check your credit score (CIC) periodically to detect early and correct credit errors, if any.
• Don't borrow too much in a short period of time to avoid lowering your credit score.

Improve income and ensure stability

Banks pay great attention to your ability to repay debt, so a stable and large enough income will be an important factor in helping your unsecured loan application be approved. To improve income:

• Try to work long term at one company or organization, this will help demonstrate financial stability.
• If you are a freelancer or freelancer, provide additional proof of stable income such as long-term contracts, bank account statements or other income documents.

Prepare complete documents and accurate information

One of the reasons why unsecured loan applications are rejected is missing documents or inaccurate information. To avoid this situation, please fully prepare the following documents:

• Personal documents (ID card/CCCD, household registration, documents proving marital status, if any).
• Salary statement from the last 3 to 6 months.
• Labor contract and documents proving stable employment.
• Documents proving additional income (if any).

Please carefully check the information in the application to avoid errors that waste time for you and the bank.

Reduce debt ratio and ensure a reasonable debt-to-income ratio

The bank will calculate your debt-to-income ratio (DSR) to assess your ability to repay your debt. To increase your ability to borrow unsecured loans, you need to reduce this ratio by:

• Reduce other consumer loans (if any).
• Pay off existing loans to reduce debt and increase the ability to borrow more.
• Only borrow what you can afford, do not borrow more than your income.

Banks typically require a DSR ratio of less than 50%, meaning you should only have a loan with total repayments not exceeding 50% of your monthly income.

Choose the right bank

Not all banks have the same approval requirements. Some banks have more flexible unsecured loan conditions or easily accept applications from certain borrowers. To increase your chances of being approved, you should:

• Read carefully the loan conditions of each bank, especially requirements on income, occupation, and credit history.
• Choose a bank that suits your income and your conditions, such as banks specializing in loan support for employees, small businesses, or freelancers.

Learn carefully about each bank's loan package

Each bank will have loan packages with different limits, interest rates and conditions. Therefore, carefully studying these loan packages will help you choose the loan package that best suits your needs and financial capabilities.

Consider loan conditions on a case by case basis.

Some banks can review unsecured loan applications based on each specific case. This means the bank will consider personal factors such as a customer's credit history, income, and ability to repay debt before making a decision. Therefore, preparing complete documents and clearly demonstrating financial capacity will help increase your chances of being approved for a loan.

Introducing a guarantor (if necessary)

Some banks allow unsecured borrowers to have a guarantor to increase their chances of being approved. The guarantor needs to have a stable income, good credit history and be willing to commit to repaying the debt on your behalf if you cannot pay. This is a useful solution if you have a weak credit profile or are not trustworthy enough with the bank.

Provide loan usage plan clear

A clear and reasonable loan usage plan will also help you score points with the bank. To increase the likelihood of an unsecured loan application being approved, individuals and businesses need to prepare a clear and detailed repayment plan:

• Determine the monthly payment amount: Businesses need to calculate the monthly payment amount to suit their financial capacity and current cash flow, avoiding the situation of exceeding their ability to pay.
• Choose a reasonable payment term: Choosing a reasonable repayment time helps businesses be proactive in financial management, while also demonstrating their commitment to paying on time.
• Ensuring ability to pay on time: To avoid incurring bad debt, businesses need to have a solid financial strategy, ensuring that cash flow is always enough to repay loans on time.

If you are in need of credit, SeABank is a better choice. 

SeABank (Southeast Asia Commercial Joint Stock Bank) is one of the prestigious banks in Vietnam, providing diverse and convenient financial services to individual and business customers. With many years of operation in the financial industry, SeABank always aims for sustainable development and improving service quality, bringing customer satisfaction.

Benefits of unsecured loans at SeABank
Unsecured loans at SeABank bring you many things outstanding benefits, include:

• Competitive interest rates: Unsecured loan interest rates at SeABank are adjusted flexibly and reasonably, helping you easily plan your finances.
• Fast approval: Fast approval process, you will receive the loan in just a few working days.
• Simple procedure: SeABank unsecured loan application is simple and quick, saving you time.
• Flexible loan limit: SeABank provides unsecured loan limits suitable to the needs and financial capabilities of each customer.

Come to SeABank today to experience attractive unsecured loan services, helping you realize all your plans in life!