Why was your car loan application rejected?

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Want a car but failed to obtain the car financing? Here are the reasons why!

Commuting to work by public transport can be difficult for some people, especially when they are in the working class. Therefore, they may want to buy a personal car for more convenient travel. However, some may face the problem of their finance application being rejected, without knowing why. Today, Motorist will explain the 4 main reasons why someone is denied car loans.


Loan applicants with a credit history of delinquencies exceeding 90 days or three consecutive instalments, as reflected in the database of the National Credit Bureau Public Company Limited (NCB), are often rejected by financial institutions. This is because lenders fear that such applicants may not be able to repay their car loan in the future.

Non-movement account

Financial institutions typically require documentation of your monthly income when you apply for a loan (for some professions, they may consider income on a 6-month or 1-year basis, such as for farmers, etc). If your bank account shows no activity or if you have no savings, your chances of car loan approval will decrease.

Income is insufficient to cover instalments

A common guideline for car loan consideration is that the monthly instalment payment should be equal to or less than half of your monthly income. For example, if the monthly instalment is 10,000 baht, you should have a monthly income of more than 20,000 baht.


Besides monthly instalments which must be proportionate to income, monthly expenses also have an impact on loan applications. If there are debts that need to be paid every month, these debts will also be taken into account to assess the borrower's ability to repay the car loan. Therefore, it is advisable to settle some debts first in order to increase the chances of approval.


If this is your first car purchase, in addition to the 4 reasons above, you should also consider the following expenses related to buying a car, such as fuel costs, maintenance costs, insurance premiums, and more. Otherwise, your first car could become a burden that you will have to bear in the future.

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Read More: Can I still arrange financing if I have misplaced my vehicle registration book?

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