Everyone chooses to fund their immediate cash requirement with the personal loans. But what if your application gets rejected leaving you in a lurch when there is a dire need?
Here are some reasons why major proportion of personal loan applications get rejected.
Are you missing out on some basic criterion?
There are a few basic things which the lender verifies before processing your loan application. These could be the reasons for your application to get rejected
1. Check Your Monthly Income & Expenditure
Have a look at the points which the banks or the financial lenders check for before giving an approval to your personal loan application.
If any of these points fails, that single aspect could be the culprit.
- The amount which you get every month should sustain the repayment of your personal loan.
- They check for your job profile, its stability and even how often you change your job.
- The pre-approved bank loan may be cancelled if you lose your job before getting the loan amount to hand.
- Sometimes, the financial situation of the work place is even considered.
How Credit History Affect your Loan Approval?
- If you have failed or skipped to repay your past loans.
- If there is any overdue.
- You are already paying repayments to many other loans and your income is less to repay for the new loan applied.
- If you have been a loan guarantor and that person failed to repay, you are obviously accountable. Your credit score effects if you fail or unable to clear the loan in this regard.
In a word your personal loan application will get approval only if you have a good credit history.
Presence of Invalid Details:
Always ensure that you provide and verify that all the details which are filled in the application are proper. As even these small mistakes might be accounted to be the reasons for your loan denial.
The purpose of the loan should be clear and credible, else there are chances for your loan to get rejected.
Assets used as Collateral:
The assets which you are using as collateral must be of proper value, otherwise the lenders will come up with a cause for not approving loan.
Doesn’t that sound simple enough? Now if you got all these right, and yet your application got rejected, write to us and we will try our best to help you.
Happy loaning people!!