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Answer: Common grounds for declining credit applications include: - Applicant does not have ability to repay the facilities applied for - Purpose of borrowing not in line with facilities applied for - Unsatisfactory financial results of the applicant - Applicant has other substantial borrowings resulting in high gearing (i.e. amount of loan is higher than capital) - Unsatisfactory conduct of current account by the applicant - Unsatisfactory repayment records with other lenders - Applicant has cases which are pending legal action - High business risk such as over dependence on single buyer or supplier - Lack of financial commitments from business owners (i.e. not willing to commit additional working capital) - Weak management of the applicant - Sole proprietor/partners/directors/shareholders/guarantors etc. facing bankruptcy actions from other parties It is a requirement by Bank Negara Malaysia that financial institutions should inform the borrowers formally in writing, clearly identifying the areas in which the borrower failed to satisfy. This will ensure that the borrowers are aware of the reasons for the rejection as well as assist the borrower to improve in the areas concerned for future loan applications.