When it comes to arranging quick funds during an emergency, nothing beats the facility of the personal loan!
If you have the required eligibility, then you may get the approval for a large amount from reputed lenders in India.
However, before applying for a personal loan, many borrowers don’t consider some vital aspects and face rejection.
But if you want to avoid any of the personal loan rejection reasons, then this post is for you.
Read on to know some simple ways you can avoid the personal loan rejection!
- When you have a lower CIBIL score
One of the personal loan rejection reasons is when you have a lower credit score. CIBIL score does matter as lenders consider it as a vital eligibility parameter. It is because a personal loan is an unsecured facility. Yes, you don’t need to pledge any collateral for it. Hence, if you maintain a strong CIBIL score, then you may avoid personal loan rejection. You can do that by repaying your active loan EMIs and credit card outstanding on time. Ensuring a credit score of 750 or more can help you get the personal loan approval quickly and at a lower rate of interest.
- When you don’t have a stable job history
Lenders want to make sure that the candidate that they are approving the loan is ideal in repayment. And it is why they want to ensure that you have a stable employment history. If you are among those who have the habit of switching jobs, then you may see personal loan rejection coming your way. Thus, if you have a personal loan to apply for, ensure that your employment is a stable one.
- When you apply for an amount way too much
If you apply for an amount that is way too much than what you can repay, then lenders may see it as an ideal reason for the personal loan rejection. Hence, you should always check your eligibility in advance. You can do that by using the personal loan eligibility calculator. The tool is available for free on a lender’s website 24/7. This way, you can adjust the loan amount that you can repay and avoid being rejected.
- When you have too many EMIs to clear in a month
Lenders also see it as the potential personal loan rejection reason if they see that you are already burdened with too many debts. In this case, it may not sanction your personal loan application. It is as they may consider that you may default on the EMIs. Hence, if you want to apply for a personal loan, ensure that you clear your ongoing debts. It will not only help you get the approval but even for a large amount.
- When your documents are not in order
When it comes to personal loans, lenders want your documents to be in the order. Any discrepancy may lead to personal loan rejections. Thus, when you are applying for a personal loan, check out the documents required for it and furnish it. Some standard documents required for a personal loan in India are:
- Your KYC Documents.
- Employee ID Card.
- Last 2 months’ Salary Slips.
- Your Salaried bank account statements for the previous 3 months.
You are now aware of the basic personal loan rejection reasons that may not lead to loan approval.
You should ensure that you resolve them and get closer to the loan approval.