Before getting the answer of this question, it is important for you understand that banks and online lenders are very different from each other. Their policies, conditions and process to offer small cash help to salaried people is very different. For example banks follow the traditional lending process for small funds also and do not deal with the people who they think are risky in any nature. Whereas online lenders are open minded who are ready to take risks to make bigger profit. This is the main reason; online loan providers give approval to those short term loan applications also which are rejected by the banks on the basis of their traditional norms.
There are many reasons behind the rejection of the application by banks which are ignored by the private lender. Here is the list of reasons for bank refusal but online lenders approval that help you to clarify your thought.

Check the following reasons to understand the situation that creates rejection from the bank and approval from private lenders:

• Credit Background And Credit Worthiness In The Money Market


As the part of traditional lending banks always check the credit rating of the application and disapprove the application of the low credit scorers without understanding their situation and point of view. On the other, online lenders do not follow their path. They also do a credit check the credit history of the application but they still give them approval in order to give them the chance to rectify their mistakes. Their application process gives more stress to the income and repaying ability of the applicant rather than their previous credit records.


• Working History


Banks are quite known for rejecting the application of the job hoppers who change their employment frequently in a short time period. It is noteworthy that online lenders also don't like job hoppers but if an individual is sticking on his/her latest job from at least six months than he/she got the chances of getting approved. Private lenders do not dig in your employment history but they surely want you to hold your current job from a few months than ensure them that they are giving their money in safe and trusted hands.


• Long And Unnecessary Paperwork

Banks and physical lenders want heir applicants to meet their long and tiring paperwork to get the approval. In case, some mistake happens while meeting the documentation requirements than they reject the application or delay their decision for long time period. Loan seekers choosing an online mode to acquire short term loans need not to bother about this as filling a single online form carefully is enough to get these finances. Online lending is free from unnecessary paperwork formality that makes it possible for applicants to get the easy approval without facing any problem.

Conclusion

Banks can reject the application for many reasons which do not play any role in the lending process of online lenders. So, you check the reason of disapproval to match with the above reasons and to decide that you can get the approval from online lender or not.

It is noteworthy, that if your application is rejected because of reasons like low income then there are high chances you get the rejection from private lenders also. It is because good earnings and good repaying ability are the main conditions to fulfill to acquire the loan approval.