5 Reasons Behind Your Loan Rejection

loan rejection

5 Reasons Behind Your Loan Rejection

Loan rejection can be due to many ways and in order to understand why your loan rejection happened, you need to first understand what does a loan means.
A loan is a form of debt incurred by an entity or an individual. The lender is usually a financial institution, corporation, or government—advances a sum of money to the borrower. In return, the borrower also agrees to a certain set of terms including any, interest, repayment date, finance charges, and other conditions.

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Due to certain factors, your loan can get rejected. Some of these factors are mentioned below:
  1. Changing job frequently: If you change your job constantly than it is a sign for the lender that you may not pay off your dues in an appropriate time, because of the job instability
  2. Poor Credit History or Credit Score: Not paying a loan EMIs or your existing Credit card bills or any other default in payment can get your CIBIL score lower and you will have a poor credit history which will make the lender reject your loan application because of bad track record.
  3. Low level of income to pay off debt: If you do not have enough income to pay your EMIs of the loan than you have bleak chances of getting a loan. So, make sure you have a minimum income requirement by the bank.
  4. Wrong details filled in the loan application: Lack of information or wrong information filled can also lead to rejection of loan application, also you need to submit required documents to the bank manager.
  5. Rejection of previous applications: If any of your previous loan applications got rejected due to any reason, it gets recorded on the credit report of yours. Previous loan rejection can also act as a barrier to getting a loan.

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Reasons for getting a Personal Loan

Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.


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