10 December, 2022
Applying for a personal loan without proper deliberation may lead to its rejection. Understanding why your loan application was/could be denied can help you out next time you try to qualify for the loan. Here are the 6 most common reasons why your personal loan application might have been rejected.
1. Low Credit ScoreAfter you apply for a personal loan, one of the first things the lender will do is check your credit score. In India, CIBIL is one of the respected firms that provide credit score data to lenders. If your CIBIL score is above 700, it is considered an eligible score, making it highly likely that you will be given a Personal Loan.
2. Applying for Too Many Loans/Credit Cards - If a borrower submits an excessive number of loan or credit card applications, each time a bank runs a credit report or credit score in order to process the loan or credit card application, it is classified as a hard inquiry. The score may be lowered if there are too many challenging questions. Low IncomeWhile processing your Personal Loan application, one of the required criteria for eligibility is to have an appropriate regular income through a job, profession, or business. If your income is lower than the criteria or if it is volatile, the chances of you getting a Personal Loan can drop.
3. Inaccurate Details in ApplicationIf the details regarding your name, residence, phone number and other account details are inaccurate, it will be challenging to generate the necessary information about you. Without the right information, it is impossible for banks to approve your personal loan.
4. Job InstabilityFinancial stability is highly valued when it comes to providing you with a loan. If you switch jobs frequently or do freelance work which is volatile, there are high chances that your loan application will get rejected.
5. Too Many Pending LoansBanks can access your financial profile even if you have availed loans from third-party banks, which is why it is advisable to avail of loans only when necessary and ensure timely payment of instalments. If you have multiple ongoing debts with banks and NBFCs, your likelihood of getting a personal loan decreases.
Not EligibleThere are other criteria of eligibility for personal loans other than income level and credit scores like age, nationality and even educational qualification. Many times banks tend to think twice about your loan application due to these reasons.
If your personal loan application is rejected once, it is recorded in your credit report, leading to your further inability to borrow funds easily. It is advisable to keep the above-mentioned things in mind, and apply only when you are ensured that the loan application will not be rejected. If you feel that you lack any of the parameters, it is better to improve and then apply.
Call: Customer Service Number: 022489-30118, Complaint Number: 08047181465, and
Email：[email protected] to get more information about the personal loan.