How To Avoid Rejection Of Your Loan Applicationadmin
People generally apply for a personal loan, when they need to finance their immediate cash requirements. In this situation, they generally apply for a personal loan from one or more than one banks. However, your application for a personal loan is not a guarantee of approval of loan. There are many examples when bank rejects their loan application on the basis of one or other ground. Though, none of us like to get rejection of our loan application but generally it has been seen that lack of some key points render our loan application as rejected application.
Therefore, we should be aware about such key points that may be responsible for the rejection of our personal loan application. It would be more beneficial to analysis our personal loan eligibility in advance to avoid rejection of our loan application because rejected loan application can negatively affect our credit history and future prospect of availing loans.
Some of the common reasons for rejection of personal loan applications are:
You have to provide correct and valid details in your loan application through loanvenue. Bank enquired a lot of information about you and your financial status in a loan application form. So be careful while providing such information. If bank finds any of these information as false or invalid, your loan application may get rejection from the bank. Never try to give any false information in your loan application.
Bad CIBIL Score
If Your CIBIL Score is poor then your application for a personal loan is likely to get rejected. So Therefore, it is advisable to check your CIBIL score our loanvenue before applying for a personal loan . You may check it online. Your credit history decides a lot about the acceptance or rejection of your loan application. No bank or financial institutions like to grant a loan to a person who has a bad credit history. You should always remember that your credit history may be affected by your silly negligence like late payment of your credit card bill , miss payment of your previous loan EMI , overdue loan etc, .
Nature Of Your Job
Yes , it is true . The nature of your job will also considered by the bank as a criteria for the approval of your loan application .If you are on a probation period or if you are changing your job frequently or you are doing job on temporary basis , your loan application may not get approval from a bank . Stability of your job is a very important factor that plays a very important role for approval for a loan.
Besides the nature of job , the income is also a very important factor in deciding the approval or rejection of your loan application . If your income is not sufficient to repay your required loan EMI , your loan application would be rejected by the bank because all lenders like to safeguard the repayment of loan amount . And if your income is not sufficient to pay EMI as per the loan requested, you may get lower amount of loan approval. So check the minimum income required for the loan amount applied for.
EMI OF Your Previous Loan
Some times, you may be already paying the EMIs of your previous loan or loans . In this situation, your current eligible income minus total of current EMIs, would be considered as your applicable income for loan calculation, and if bank finds that you are already spending a majority of your existing income towards current EMI , bank may reject your current loan application . Therefore, it is clear that your previous loan approval is not a guarantee of the approval of your current loan application.
Your Previous Rejected Loan Applications
If in the past you have applied for many loans and if most of them are being rejected by the banks on the basis of one or other ground then it may badly affect not only your credit score but also your rejected loan application appears in your credit history , raising doubts in the mind of applied bank, resulting in rejection of loan application. Therefore, it may be a good practice to apply first in one bank and wait for the response and if your loan application get rejection , then you should understand and resolves the reasons of rejection before applying again in a new bank . This will save your credit history from being hampered.