3 ‘I’s why banks reject your Personal Loan application?
Personal Loan is one of the unsecured loans, means you no need to keep any asset as security in the hands of banks. You no need to go through any complicated steps while applying for a Personal Loan but still many people make some common mistakes and automatically their applications face rejection. Before applying for a Personal Loan, you shouldn’t commit these common mistakes.
Inappropriate Credit Score and History:When it comes to availing a Personal Loan then two factors play an essential role; Credit Score and income. There’s a direct link between your credit score and your income. Many people think that personal loan comes at a higher rate, that’s true but not exactly. Here you need to understand the role and game of your credit score. The bad score will let you avail a personal loan with high-interest rate whereas if your credit score is good then your interest rate will automatically come down. Your CIBIL shows your previous credit history as well.
Insufficient Salary:As we know, your salary or income is one more essential factor. The bank always checks your income source to make sure will you be able to repay or not. A person with insufficient salary and unstable job hardly get a personal loan. Many banks such as State Bank of India also check your stability time. According to SBI’s criteria, a person should have minimum experience of two years of the same company. Before applying for a loan, make sure your salary matches the eligibility criteria.
Inappropriate Documents:If we talk about to apply for a personal loan online then you can easily and quickly get the loan. Approval and disbursal all depend on your submitted documents. Accurate documentation will automatically help you get a personal loan quickly. Single spelling mistake and the mismatch can also make your application face rejection.