Concept in Definition ABC

Denial is the procedure by which something is rejected. Said in a very direct way, it means saying no.

The concept of denial is part of an administrative and bureaucratic terminology, because in everyday life it would be considered an unnecessary technicality or pedantry.

For there to be a denial, there must be a prior request or petition. Thus, we could speak of a process in three parts:

1- Presentation of a proposal, idea or request through an administrative procedure ...

2- Reception and evaluation of the same and ...

3- Final resolution of acceptance or refusal (in the latter case it is common to justify the reason of this decision). These phases are manifested in everyday realities: in relation to a visa, in the request for a social benefit or in the request for a bank loan.

Denial or granting of a bank loan

Most people have had the need to apply for a loan to buy a house, a vehicle or to start up some draftbusiness. Banks provide credit as long as they consider that the requested amount will be returned normally.

To grant or deny a loan there are a whole series of variables that must be considered. In the first place, the guarantees or guarantees of the applicant are studied. Another important aspect is your creditworthiness financial, that is, his economic capacity to face the responsibility to return the borrowed money plus the corresponding interest. The indebtedness in force by the person requesting the loan is also analyzed. In the event that the loan is intended for a business project, the market situation, the level of risk and the chances of success of the business are evaluated.

On the other hand, the denial of a loan is practically guaranteed in the event that someone does not work, is in default with other banks or their debt / debt ratio.income is insufficient. To find a viable alternative to denial, there are some possible solutions: ask a family member or a family member for money. friend, find a guarantor or rescue a savings plan. In recent years, two alternative systems have become fashionable to avoid a hypothetical denial of credit: the figure of business angels (someone who finances someone else's project with their own capital) or the crowdfunding modality (the collective financing of a project).