A lot is changing with the modern era. These days applying for a personal loan is much easier with the apps designed especially for personal loans. Applying for a personal loan via these apps is much easier and simpler in comparison to applying for a personal loan by visiting a bank. Despite the fact that these apps are very user-friendly still, something may go wrong that can lead to the rejection of your application. It may happen also with you that your application may be approved by the app on the same day but may be rejected by the bank later on. Then your personal loan gets rejected and you will have to apply for the loan all over again.
Following are the reason that can be there behind the rejection of your personal loan application:
Insufficient or incorrect documents: The documents required by the personal loan may be minimum in number. Having enough documents according to the given list is a crucial step in the application for a personal loan. As you do not need collateral to pledge. It is important for you to read the list of asked documents and arrange the documents accordingly. Arranging the documents according to the list will lead to the quick approval of the loan.
Applying with a low credit score: Personal loans require a higher credit score to get approved. It needs a credit score range from 300 to 900. A higher credit score will increase your chances of approval of the loan. Personal loan eligibility directly depends on the credit score. So if you are applying with a low credit score and your application got rejected. Then first try to improve your score then apply for the loan. Paying credit card bills and not over-using your credit card will help you to improve your credit score.
No steady source of income: Personal loan requires that if you are applying on the basis of your current working company then you must have been an employee of that company for more than 1 year. So if you are applying for a personal loan on the basis of the company in which you are working for less than 1 year. Then it will lead to the rejection of your application.
Eligibility criteria: Apart from documents there are more eligibility criteria that need to be fulfilled in the case of personal loans. Like your age should be in the asked range and if you are applying on the basis of your job then your salary should be more than INR 25,000. Though eligibility factors may vary from bank to bank. But there are many banks and NBFCs like ICICI Personal loan, etc. are available in the market that offers common eligibility factors.
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