Today whether it is a middle-class person or Business class professional everyone some day or the other needs a loan. Getting a loan seems an easy job but many issues occur when you apply for a loan. The number of applicants is very high, but the applications selected are very few. Where on one hand the RBI shows an increase in bank credit of 21.4% between March 2007 and 2013, on the contrary, non-performing assets have tremendously increased, to Rs. 1, 64,000 crores between 2008 and 2013.
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This is a reason banks have started taking more precautions before lending a credit. If in case they find any loophole in the customer, his application will be immediately rejected. To apply again, the person needs to get a green chit by the authorities. Following are the points that would help you know the basic reasons why your loan application is being rejected:
1. Are you in the habit of switching your job frequently?
Eligibility criteria for the loan may depend upon your job stability that could be of greater importance for a particular bank to lend. Some banks may even ask you job profile, duration of your job and even your designation before granting your loan. Therefore, if you are a serial job switcher, your application might get rejected.
2. The size of your Business may even matter.
Being a salaried employee bank might be interested in knowing about the nature of the organization. Whether the organization is private or government, how old it is and what is the future scope. If somewhere bank feels its future is unstable your application, may get rejected.
3. Is your location convenient to approach and not on Defaulters list?
Banks conduct verification drives of the residential areas and the office address of the person before lending a loan. A location that the bank feel is not easy to reach or is in the area that has a bad record their application gets refused. Even if the applicant lives with the person with a poor credit history the chances of rejection increase. The reason behind is the address. If your address matches the defaulter's address, you will land up losing your application. In case, you have shifted to a new place, and you are not a registered candidate on the electoral list, you might face difficulty in getting a loan.
4. Do you have to fulfill too many prior commitments?
Income is not the only scale that will justify your eligibility for getting a loan. There are a hundred of other things that you need to fulfill. If you are already repaying EMI’s, credit card bills or insurance premiums apart from your household expenses that in total make more than fifty percent of your total salary you have a risk of being rejected.
Consider all these points before applying for a Loan otherwise you might also face the rejection. Dialabank is here to help you to find the best offer. Avail Doorstep Services and Experts Advice. Apply Now and get Instant Approval for your Loan.