This helps explain why someone earning a reasonable salary can still be refused a loan. Income is only one part of affordability — existing debt and household expenses affect how much disposable income is actually available, which is also why taking several loans simultaneously can eventually make access to further credit more difficult.
Source: National Credit Act Affordability Assessment Regulations
Frequently Asked Questions
Does a high salary guarantee loan approval?
No — affordability and other credit-assessment factors still matter.
Are existing loan repayments considered?
Yes — existing monthly debt obligations must be taken into account.
Why does my credit profile matter?
It provides information about existing credit obligations and repayment history relevant to credit assessment.