Many banks and NBFCs in India provide personal loan for their customers. Ruloans has made the application process for personal loan easier with its online application system. You have to have specific eligibility criteria and documents with you to get a personal loan. You can compare your options online and choose the lender of your choice on Ruloans. But sometimes your personal loan application may get rejected. Here are 6 reasons why personal loan application might get rejected.
Low Credit Score
The credit score range is from 0-900. Banks and NBFCs approve personal loan if you have a credit score of minimum 650. If your credit score is less than 650 then your personal loan application might get rejected. To avoid this, know which factors affect your credit score.
Unstable Mode Of Employment
Banks and NBFCs check whether you have a stable income history or not. Your stability works as a guarantee that you are committed and can pay off the loan without any default. If you have changes too many jobs in the last year, it might affect your credibility as personal loan borrower negatively.
To get a personal loan from any bank or NBFC in India, you need to fit in their income eligibility criteria. Each lender has designated a specific minimum income limit. If your monthly income is below that limit, your personal loan application might get rejected.
Have Multiple Debts
Banks and NBFCs check your loan repayment ability before granting you a personal loan. They check what is your monthly income and other financial obligations you currently have. If you have multiple debts (home loan, car loan, credit card outstanding etc.) and paying multiple EMIs, the lender will not approve you one more debt.
While submitting your personal loan application, you should fill all the correct information and provide legitimate & legal documents. If the information or the documents provided by you are found wrong or misleading, your personal loan application will get rejected instantly.
Have Applied At Multiple Places
If you have applied for a personal loan at multiple banks and NBFCs, it will showcase on your credit report. This is considered as negative by banks and NBFCs. So the more applications you make, the lesser chances you have of getting it accepted.
Now that you know why your personal loan application may get rejected, build your file accordingly and apply for a personal loan here!