Personal loan is an unsecured financing option which can be obtained without having to pledge any collateral/ security towards it. This is an all-purpose loan which can be used to cater to the applicant’s several financial obligations such as wedding, travel, education, high-end shopping, for debt consolidation and much more.
However, there are certain criteria on which your loan application may not be able to fulfill and thus get rejected. There are numbers of personal loan rejection reasons that you should aware of. Know about these factors and avoid such a situation -
Study your rejection letter well as it might state the reason as to why your loan got rejected. If the letter does not state it you can talk to the lender’s representative to know more.
A bad credit score could also lead to your loan application getting rejected. While, a good CIBIL score of 750+ or more can help you negotiate loan terms with your lender and acquire the preferred loan amount at lower rate of interest.
Also Read: Effects of bad credit score
If your income source like a job is not stable or if the income is too low your application might get rejected. Therefore, check the eligibility criteria of the lender before applying.
Not having relevant paperwork would also lead to rejection of your loan application. Assemble all relevant documents once you are aware of them both in hard and soft copies to improve the chances of your application getting accepted.
Moreover, you can apply for the loan with a co-applicant. But make sure they have a good CIBIL score and stable source of income to support your application.
Read More at: Personal Loan Rejected? 5 Things You Need To Do Next
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