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WHAT ARE THE LESSER KNOWN FACTS BEHIND LOAN REJECTION?


When a lender considers your loan case weak then your loan gets rejected. Therefore, it is good to know prior about the factors that can make your loan application wean and can eventually be a reason for rejection. Before you "Apply For Loan" you may think from the lender’s perspective to understand the possible reasons behind disapproval.

These factors are based upon some experiences such as how you could repay your loan money with ease, what if your relocate without informing the lender or how trustworthy you are to repay the EMIs? So, these are some concerning factors a lender look in loan applicant to clear the EMIs regularly. In this blog post, we have discussed some of the lesser known factors that could be the key reason behind the rejection of loan.

  • Credit Score: It is one of the major key factors which could be responsible for a loan rejection. A credit report records behavior of all the borrowers in terms of scores and makes it available to the lender whenever requested. Your unpaid bill payments, delayed loan repayments and frequent CIBIL generation request results in low credit score which may reduce the chances of your loan approval.
  • Income: The minimum amount of earnings required to get approved for loan varies from lender to lender and loan type. It solely depends upon the debt to income ratio which means your EMI can be exceeded from 40% of your monthly income. The lending institute only considers your income as net take home salary rather than variable incentives, bonuses etc. which you might add to your monthly earnings.
  • Age: The age limit generally requires being in range of 21 years to 60 years to secure any type of loan. Lower will be the age, higher will be the chances of loan approval as in your early ages you may grab great opportunities to get hike in your salary and till the retirement age you might have enough money leading to have a great financial health for future.
  • Profession: Sometimes, loan quantum depends upon the loan applicant’s designation and company’s profile. The companies are categorized under different classes in term of salary and posts. The people working in upper category are considered to be more stable and have less chances of loan rejection either they "Apply For Loan Online" or offline.
  • Residential stability: Your personal and professional paperwork take care of this constraint. Your permanent address is collected as proof to carry out the specific loan process. In such scenarios where you are living in rented accommodation, lender may ask to provide extra details to confirm your stay in a particular place.

These are some of the above listed factors which you not look after or take care of may result into disappointment or rejection of your loan application. We hope this article has cleared some of your queries related to loan refusal and why lenders ask for such details before processing your loan. If you have more doubts, you can visit ShubhBank to know more about the loans.


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