Personal loan is a great financing option to help cater to several financial obligations. As lenders do not scrutinize the usage of the loan it can be utilized to manage wedding expenses, fund exotic vacation, take care of higher studies and much more.
Let’s take a look at reasons to rejection of Personal Loan application.
Low CIBIL Rating
Personal loan is a form of unsecured loan. Therefore, lenders require a good credit rating which is a measure of the applicant’s creditworthiness. It gives the lenders confidence that the borrower will pay up the loan on time without any defaults. Therefore, lenders access your past repayment history to ensure of the same.
Maintain a stable income source which will give the lenders an impression that the borrower has the capacity to pay up the loan. Avoid changing jobs too often as this will impact your loan application negatively. Besides, having a stable source of income with a reputable employer will help to acquire the loan faster.
Maintain Proper Paperwork
Lenders usually offer the loan on simple eligibility criteria which includes -
You must be between 23-58 years of age.
You must be a salaried individual employed with an MNC, public or private company.
You must be a residing citizen of India.
While, basic documents needed for the loan are - KYC documents, Employee ID card, salary slips of previous two months and bank account statements of last three months.
You may consider opting for personal loan from major NBFCs which offer high value loan at affordable rate of interest and flexible tenure. Apply online to know more about their eligibility criteria and terms to make informed decisions.
For more details, Read this: 4 Major Personal Loan Rejection Reasons You Should Know