A personal loan is a loan that comes in handy when you want to fund personal expenses such as wedding, holiday, education, medical emergencies, and so on. There are various factors depending on which the lender decides to give you a personal loan. If you do not satisfy the eligibility criteria, then your personal loan application could be rejected. Let us understand some of the common reasons why your personal loan application could get rejected.
What Are The Common Reasons to get the Personal Loan Rejected?
Some of the common reasons for your personal loan application to get rejected are:
Low credit score:
If your credit score is low, then you have less chances of getting a loan. A credit score of above 750 is considered very good, and you will get a personal loan easily with this credit score.
Low income:
if your income is not upto the set eligibility standard, then your personal loan application is likely to get rejected. Lenders hesitate to give personal loans to people with low income, since they may have the doubt whether the individual will be able to make timely payment of EMIs.
Inaccurate details in application:
fill your application with correct details. Lenders will reject your application if your details are incomplete or false.
Changing jobs too often:
If you change jobs too often, the lender could reject your personal loan application. They may consider this as job instability.
Job instability:
Financial stability is highly valued. If you change jobs frequently or do freelance work may not be steady, there is a high probability that your loan application will not be accepted.
Several pending loans:
Banks can see your financial details even if you have procured loans from third party banks, which is why you should get loans only when required. This will ensure payment of EMIs on time. If you have several current debts with banks and NBFCs, your likelihood of procuring the personal loan decreases.
Several loan applications:
An individual will also have difficulty in obtaining a personal loan if he has applied for loans on several websites. This indicates credit hungry behavior to the lenders. So, one must not apply for multiple loans. You can apply for a personal loan on the creditmantri website - creditmantri.com. You can explore and compare lenders to apply for personal loans at Creditmantri.com according to your eligibility. Creditmantri has experts who will guide you to apply for the best personal loan according to your credit profile. You need not apply for multiple loans. If you do not get a response from a lender, we will guide you as to which lending institution you have to apply from next.
Other factors:
Lenders take into account other factors, such as age, nationality, education etc to give you a personal loan
Also Read: 8 Reasons Personal Loans Are Rejected Even With Good Credit Score