If a Slovenian bank has turned down your loan, it rarely means you can never get one. Most often it means the instalment is too high for your current income and obligations. So first work out how much of an instalment you can actually afford, then check your data in SISBON, and choose one of the realistic routes: a smaller amount, a longer term, a closed overdraft or a co-applicant. Avoid quick loans from non-bank lenders, because a more expensive loan only makes the problem bigger.
How large an instalment banks will roughly allow you today can be worked out with the credit capacity calculator.
Why the bank says no
For every new consumer loan or mortgage, a bank must follow two Bank of Slovenia rules. All monthly repayments together, new and existing, should generally not exceed 50% of your net income. After all repayments you must be left with the legal minimum for living costs, which the Bank of Slovenia reviews every year (currently €745 a month), plus an additional amount for each dependent family member. The bank applies whichever of the two rules is stricter.
Everything the bank can find counts as an obligation: loans, leasing, instalment purchases, and also overdrafts and credit cards, even if you do not use them. The bank also checks your payment history in SISBON and how stable your income is, such as your type of employment and length of service. The process is described in more detail in the article on how banks calculate creditworthiness, and the current living-cost amounts in the article on minimum living costs for a loan.
Step one: check what SISBON says about you
SISBON is the Bank of Slovenia’s system through which banks and other lenders share data on debt and repayment history. It is not a blacklist, but it shows the bank all your loans, overdrafts and any arrears.
You can view your own data for free in the Moj SISBON web or mobile app, which you sign in to with SI-PASS, or get a printout through your bank. Check three things in particular:
- whether all the loans and overdrafts listed are really yours and still open,
- whether a closed overdraft or a repaid loan is also closed in the system,
- whether any arrears are recorded that you do not know about.
If something is wrong, ask the bank that reported it to correct it. It must do so within ten working days. Data about a credit deal, including arrears, is kept for four years after the obligation ends, so an old missed payment does not disappear the moment you repay the debt.
Example: why Tina was turned down
The example uses the current minimum of €745. Tina earns €1,150 net a month, repays a car lease at €280 a month and has a €1,000 overdraft, which the bank counts as about €40 of monthly obligation. She wants a €10,000 consumer loan over five years to renovate her bathroom, which at an interest rate of around 6.5% would mean an instalment of about €196.
| Calculation | Amount |
|---|---|
| 50% of income | €575 |
| €745 rule: €1,150 - €745 | €405 |
| Existing obligations (lease and overdraft) | €320 |
| Room for a new instalment (stricter rule) | €85 |
| Instalment wanted for €10,000 over 5 years | €196 |
So what limits Tina is not the 50% cap but the amount she must keep for living. What she can do:
- Close the overdraft: the room for an instalment rises to €125, enough for €6,000 over five years (instalment about €117).
- Extend the term to seven years: the instalment for €10,000 falls to about €148, which is still too much, and the total interest cost is higher.
- Wait until the lease is repaid: the room for an instalment rises to about €365 and €10,000 over five years becomes affordable.
What you can do
Reduce the amount or extend the term. A smaller amount is the most reliable route. A longer term lowers the instalment but raises the total cost of the loan, so choose it only if the difference in the instalment is decisive. You can check the full cost with the APR calculator.
Close overdrafts and cards you do not need. The bank counts them as obligations even when unused. Before you apply again, check in SISBON that they really are closed.
Wait for an existing obligation to end. If a lease or loan runs out in a few months, waiting is often smarter than looking for a more expensive solution.
Add a co-applicant. If a partner or another household member has a regular income, the bank takes the combined income into account. A co-applicant is liable for the loan just as you are, though, so it should be a considered decision.
Try another bank. The Bank of Slovenia rules apply to everyone, but banks differ in how they treat particular types of income, overdrafts and collateral. Compare offers for your amount in the consumer loan comparison.
Consolidate existing obligations. If you have several small loans, one loan with a lower total instalment can replace them. Just check that you do not end up paying much more in interest and fees.
A checklist of what to sort out before your next application is in the article on how to improve your creditworthiness before visiting the bank.
Traps to avoid
Quick loans from non-bank lenders. Their annual percentage rate can be very high. The Consumer Credit Act caps it for non-bank lenders at 200% of the banks’ average APR published by the Bank of Slovenia. For small short-term loans, however, that average is already high, often more than 50%, so the permitted APR can exceed 100%. The Bank of Slovenia publishes the current averages twice a year on its page of average APRs for consumer loans (in Slovenian). If a bank refused you because you cannot afford the instalment, a more expensive loan only makes the problem bigger.
Promises of a “loan with no checks”. By law, consumer lenders must assess your creditworthiness before signing a contract. An offer without any checks is therefore a red flag.
Paying upfront to “arrange” a loan. If a broker asks for money before you get the loan, be very careful. Reputable brokers and banks charge fees when the loan is approved, and even those you check in the contract. What to watch for in fees is covered in the article on hidden loan costs.
A new loan to pay an old instalment. If you use a new loan to pay the instalments of existing ones, the debt grows instead of shrinking. That is a sign it is time to talk to your bank, not to take another loan.
When repayments are already a problem
If you are already struggling to meet your obligations, do not wait until you fall into arrears. Talk to your bank as soon as possible about rescheduling, meaning a longer term with a lower instalment, or about a temporary deferral. Banks are usually more flexible before arrears arise.
The Slovenian Consumers’ Association (ZPS) also offers legal advice, free of charge for its members. If your debts are permanently higher than you could ever repay, the last resort is personal bankruptcy. The debtor pays no court fees in this procedure, but bankruptcy has long-term consequences, so talk to an expert before deciding.
In short
- Work out how much of an instalment you can afford, and only then decide on the amount.
- Check SISBON and have wrong data corrected.
- Close overdrafts you do not need, and wait for obligations that end soon.
- Compare several banks and try a smaller amount or a co-applicant.
- Do not solve a refusal with a more expensive quick loan.
This article is for information only and is not financial or legal advice. The Bank of Slovenia updates amounts such as the living-cost minimum from time to time, so check the terms of a particular bank before you apply.
