3 reasons why your Personal Loan Application faces rejection
Facing constant rejection may break you up but it’s compulsory to understand why every time your application gets rejected. Your time tries, and eager wait for loan disbursal go fruitless when you see the sign of rejection on your applied application. Remember every loan has its own features and requirements. Personal Loan is an unsecured loan in which you no need to give any collateral but your credit history and income play an essential role. Check out the reasons behind your application rejection
Personal Loan Application Rejected-How and Why?
Inadequate Income:No matter how much you’ve got in your account but if you’re unable to maintain your monthly cash flow, you won’t get a Personal Loan. The loan’s eligibility criterion says an applicant’s income proof is compulsory. The loan tenure is short with a high rate of interest so the bank confirms your income. If any default takes place in paying EMIs from your side, then it will affect your credit history. If your income matches the criteria then you can apply for a loan.
High Loan Sum:As we know we know today we have online eligibility calculators to figure out our interest of rate and loan duration etc. Availing a Personal Loan is easy but it doesn’t mean you fill your desired amount on the application. The loan sum sanctioned to you entirely depends on your salary. Your salary decides your monthly EMIs. Before availing a personal loan, it’s important to once go through the definition, personal loan’s features, benefits, documentation and eligibility criteria.
Bad Credit Score:While a sanctioning a loan, every bank checks out your credit score and history. Your credit score determines whether you’re eligible to avail a Personal Loan or not. Exceeding your credit limit can also affect your score. A good CIBIL (Credit Information Bureau (India) Limited) score will definitely swipe away all the obstacles from your personal loan’s path.