Now applying for online loans is easier because it can be done online through an app, allowing you to do it from home while relaxing. The requirements are easy, and there are no unusual collateral requirements. For those who need quick funds, online loans can be disbursed on the same day.

However, despite the many benefits and conveniences, sometimes online loan applications can fail, or you may have to wait for days for approval or even face rejection.

Why Was Your Loan Application Rejected?

There must be reasons why your loan application was rejected. Here are some common reasons:

Incomplete or Fake Documents and Data

To facilitate data verification, online loan services usually ask users to upload documents such as ID cards, tax numbers, and salary slips. If you provide fake or incomplete documents, your loan application will automatically be rejected.

Before applying for an online loan, find out what documents and data are required. Since the application is done through an app, you will need to upload photos or scanned copies of the necessary documents. Ensure that the photos are clear and not blurry. Even if your data is correct and complete, blurry or unreadable photos can still lead to a failed application. Here are some commonly required documents:

ID Card (KTP)

Since ID cards are mandatory in this country, make sure you have one, preferably an electronic ID card (e-KTP).

Taxpayer Identification Number (NPWP)

Along with an ID card, having an NPWP is essential. It shows that you are a tax-paying worker. The NPWP can increase the trust of online loan companies in you, as it is linked to your credit history.

Employment Social Security (BPJS Ketenagakerjaan)

Although not all loan providers require BPJS Ketenagakerjaan membership, it’s good to be prepared with it.

Poor Credit History

If you’ve provided complete and correct data but your loan is still not approved, it could be due to a poor credit history. Your credit history records all your previous loans, whether from banks or other loan services, including vehicle loans, multipurpose loans, and unsecured loans. If you have a history of late payments, defaults, or unpaid installments, your credit history will be poor.

If you still have outstanding debts, it’s best to settle them first to clean up your credit history. Reviewing credit history helps minimize the risk of loan defaults.

Not Meeting Basic Requirements

Online loan services have specific criteria for their customers. Common requirements include:

• Indonesian citizen
• Aged 21 to 55 years
• Possess a valid e-KTP
• Have a job or income (proven with NPWP)

If you do not meet these basic requirements, your loan application will be automatically rejected. Ensure that you fulfill the loan provider’s criteria before applying.

Out of Service Area

Not all regions in Indonesia are covered by online loan services. If your loan application fails, it could be because your address is outside the service area. Check the service area coverage before applying.

Unreachable Phone Number

Online loan providers usually verify through your phone number or emergency contact. If they can’t reach you, your loan application will be rejected. Ensure the phone number you provide is active and can be contacted at any time.

Loan Amount Exceeds Repayment Ability

Even if online loan services offer high credit limits, such as up to Rp10 million, it doesn’t mean you can automatically apply for the maximum amount. Loan providers analyze your ability to repay the loan based on your job and monthly income. If your income is low but you apply for a large loan, your application will likely be rejected. Ideally, your loan should not exceed 30% of your income.

If you insist on borrowing more than 30% of your income, you may struggle to make monthly payments. Ensure that the amount you borrow is manageable after accounting for living expenses.

Tips for Quick and Easy Online Loan Approval

These tips should help you get your online loan approved quickly without hassle. Online loans have become a new option for people seeking additional funds for urgent needs.

Apply for a loan with Neo Pinjam from neobank and get additional funds easily and quickly.

Download the neobank app on PlayStore and App Store and apply for a loan with Neo Pinjam for your wedding preparations.

PT Bank Neo Commerce Tbk is licensed and supervised by the Financial Services Authority (OJK) and is a participant bank in the Deposit Insurance Corporation (LPS).