Dialabank: Re-applying for a personal loan

A personal loan is unsecured, which can be approved without the need of any guarantor. Since the bank/NBFC is not taking any collateral, therefore they will investigate various internal criteria like the borrower’s credit history, income, and recent liabilities before approving a loan. And if you are not able to satisfy the internal criteria, then there are chances of loan rejection. Sometimes loans are opted to overcome the unforeseen conditions like medical emergency, house refurbishing, an paying the academic fees. However, it will be very painful for an individual if the loan is being denied by the lender due to a lack of fulfilling the internal criteria.

Some measures to take if your loan is denied

Below are some measures that a borrower should take before re-applying for a loan:

Try to find out the reason for the loan rejection, then apply for the loan again. The financial institution will provide you the reason for loan rejection within 30 days in the form of a loan rejection letter where all the details about the loan rejection will be mentioned.

Some reasons for loan rejection could be:

Less CIBIL score
Too much job switching
Less income
Not qualifying the age limit

Since these are unsecured, therefore the lender investigates your credit score. Before applying for a loan, try to check your credit score. Various online platforms are present where you can check your recent credit score and get your annual credit report. Try to maintain a credit score of 750 or above while applying for a loan. Meanwhile, you can browse the Lakshmi Vilas Bank Personal loan.

A borrower should check his/her debt to income ratio is the loan is rejected due to low income. If your income is low, then you can apply for the loan that is preferred for people with lower income. Sometimes, the borrower has not cleared his/her previous dues which tends to put a negative impact on their debt to income ratio.

Since this loan follows a minimalistic approach towards the documentation required. This increases the pace of these loans as the loans are approved faster. So before re-applying for a loan, garner all the documents that are required to get the loan amount sanctioned

Documents required to get a loan sanctioned are:

Identity proof
Proof of address
Documents for income proof
Bank statements

Try to look for all the alternate options that are present in the market right now. The NBFC provides more flexibility than the government-regulated banks. If you are feeling that this loan is not suitable for you, try to go for other loans that are currently present in the market. These loans are generally taken to fulfill your personal needs or to overcome an unexpected situation. So try to check your personal loan eligibility before applying for a loan.

Must Read-What is a Good Excuse for a Personal Loan?