Personal Loan: What to do if your application is rejected time and time again?

Have you applied for a loan, and it has been rejected? You should not lose heart because it is usually that the loan application is rejected. This could have happened because your credit rating was weak, or may not have sent your bank statement with the application. There may be various reasons that the loan application should be rejected. Personal loan: Important reasons for refusal I. Poor creditworthiness: One of the most common reasons for the loan to be rejected is a poor creditworthiness. This can be a result of default in payment and delay in paying credit card account. Generally, borrowers refuse the loan application if the creditworthiness is lower than a decent creditworthiness, namely 650. Ii. Incorrect money shooter: Sometimes a loan applicant applies for a loan to a lender who has a very high measure for loans approval. You can apply for loan from a bank or NBFC or Fintech app. Generally, banks have a high measure of loan approval, and they give loan at a low interest rate. Conversion gives NBFC’s loan at a higher interest rate, but their threshold for loans approval is lower. Iii. Incomplete application: The loan can be rejected if you do not provide the necessary information such as Aadhaar verification, pan, salary strips or bank statement. Iv. New Credit Report: Sometimes the loan application does not have a credit history because he/she has never applied for a credit card or a loan. It can also be a reason for bouncing loans. You can take these steps to increase the chances of loan approval. Follow these steps to improve your chances I. Cross your application with the ideal application and make sure you submit all the documents as set out in this Livemint article. Ii. Gradually build your credit report by initially selecting a secure credit card. Iii. Try to approach more than one lend shooter in categories (Bank, NBFC and Fintech loan provider) to improve your chances. Disclaimer: Mint has a fusion with fintechs to provide credit, you must share your information if you apply. These bonds do not affect our editorial content. This article only intends to educate and distribute awareness about credit needs such as loans, credit cards and creditworthiness. Mint does not promote or encourage credit as it has a set of risks such as high interest rates, hidden costs, etc.