If a bank loan is rejected, first review the application for errors or missing documents. If issues are identified, resubmit a corrected application. Next, assess creditworthiness through a credit report (FICO score) and address inaccuracies or improve credit utilization. Explore alternative lenders like credit unions, online platforms, or peer-to-peer lenders, which may offer more flexible terms. Consider a co-signer with strong credit to strengthen the application. If rejected due to insufficient collateral, explore secured loans or asset-based financing. For small businesses, pivot to invoice factoring or government-backed programs like the SBA’s Microloan Program.

Rejection often stems from credit score inaccuracies, incomplete documentation, or insufficient collateral. A 2023 Federal Reserve study found 62% of applicants with FICO scores below 620 were denied loans, highlighting creditworthiness as a key factor. Credit unions approved 32% more small business loans than commercial banks in 2022 (National Credit Union Administration), due to lower interest rates and member-focused criteria. Online lenders like LendingClub reported 45% approval rates for personal loans in 2023, leveraging alternative data like cash flow for approval. Co-signers improved approval chances by 60% in a CFPB survey, as they mitigate default risk. Resubmitting with corrected documentation increased approval rates by 28% among applicants revisiting rejected applications (Experian, 2023). These steps address systemic barriers like rigid underwriting and leverage diverse funding sources to enhance accessibility.