Skip to main content

WHAT ARE THE UNEXPECTED FACTORS BEHIND LOAN REJECTION?

When you take a loan from any lending or financial institution, the first thing they judge is you ability to repay the loan. This evaluation depends upon various things including your creditworthiness. Some of those parameters are borrower’s age, job stability, income and credit score for sure. Therefore, before you "Apply For Loan" it is good to calculate your loan EMI with the help of EMI calculator which will help you to plan your finances well.

Every lender has their own set of eligibility criteria to approve your loan application regarding these parameters. In case, if they find any borrower not eligible in any of these aspects, it will lead to the rejection of their loan application. Here, in this article we will discuss some of the unexpected reasons that will be responsible for the rejection of your loan request. Let’s get a deep dive into them:

  • Poor CIBIL of co-applicant: However, it is really important for every borrower to have a good credit score but if your loan request gets turned down for unforeseen reason then it could be the poor credit history of your co-applicant. So, even if you have good credit score but your co-borrower doesn’t have good credit history, it may be the reason for the rejection of your loan application.
  • Frequent borrower: Lending institutions are hesitant to sanction a loan to the borrowers who already have multiple loans to repay. Approving a loan to such borrower increases the credit debt and can also lead to defaults in future.

Hence, it becomes risky for lender to lend money to such an applicant. However, frequent borrowing can also affect your credit score adversely even if you are repaying it on time. So, if applicant is financially overburdened, lenders conclude them as risky borrowers and reject their application.

  • Frequent job hopper: Career stability plays a key role when you apply for any loan application. Your stability at workspace gives a relief to the lender regarding your repayment capacity. Lenders use to lend those borrowers who are employed in an organization for minimum of two or three years. If anyone doesn’t has a stable job then it will reflect the lender that you are unable to repay the loan in scheduled time and may reject your loan request.
  • Rejected loan application in past: You should not avail any loan if you have already faced a rejection from one or two lenders. The loan rejections get recorded in your credit report and once your loan gets turned down, it may negatively impact your CIBIL. Therefore, try to improve your credit mistakes first ten "Apply For Loan Online" or offline with specific lender.
  • Irregular tax return history: It is one of the most significant factors in your loan rejection because lenders prefer to approve the loan to those applicants who have filed their income tax returns regularly in past years. To ensure themselves, lenders check your past two years IT return slips. If you hadn’t paid regular taxes in past two or three years, you loan application may get rejected.


Labels:

Comments

Post a Comment

Popular posts from this blog

A COMPREHENSIVE GUIDE TO APPLYING FOR A USED CAR LOAN ONLINE

In today's fast-paced world, possessing a car isn't simply an extravagance but a need. For many, a used car is a magnificent choice to satisfy their transportation needs without breaking the bank. Notwithstanding, financing a used car purchase could appear to be daunting. Fortunately, to apply for a used car loan online has become a convenient and accessible choice. Here is a comprehensive guide to navigating the process without a hitch. Understanding Used Car Loans Before jumping into the application process, it's crucial to grasp the fundamentals of used car loans. These loans are specifically designed for purchasing pre-owned vehicles. Lenders offer varying terms and interest rates based on factors like credit history, upfront installment, and the vehicle's age and condition. Preparing for the Application 1. Know Your Budget: Decide your budget by assessing your financial situation. Consider factors like a month-to-month income, existing expenses, and potential init...
Post a Comment
Read more

DRIVING TOWARDS APPROVAL: UNRAVELING THE CRITERIA FOR USED CAR LOAN ELIGIBILITY

In today's speedy world, possessing a car is, as of now, not simply an extravagance but a need for some. Nonetheless, buying a pristine car may not generally be squeezed into everybody's financial plan. This is where the choice of purchasing a used car becomes engaging. Used cars offer a more affordable other option, permitting people to claim a vehicle without burning through every last dollar. To work with the purchase of these pre-owned vehicles, financial organizations give used car loans. However, what are the " Used Car Loan Eligibility Criteria " for acquiring such loans? We should dive into the subtleties. Understanding Used Car Loan Eligibility Used car loan eligibility alludes to the arrangement of conditions that people should meet to fit the bill for a loan to purchase a recycled vehicle. Lenders lay out these criteria to survey the borrower's financial capacity and limit the gamble related to loaning. Essential Criteria for Used Car Loan Eligibility ...
Post a Comment
Read more

UNLOCKING THE BEST DEALS BY EXPLORING THE LANDSCAPE OF CHEAPEST LOANS IN INDIA

In the vibrant landscape of India's financial sector, finding the cheapest loans is akin to finding an unlikely treasure. With various lenders, products, and interest rates in play, navigating the realm of loans can be both daunting and rewarding. In this aid, we dig into the intricacies of getting the " Cheapest Loans In India " exploring key aspects and choices available to borrowers. Understanding the Dynamics of Cheapest Loans in India In the journey for affordable financing, it's essential to fathom the factors that impact loan costs. Interest rates, loan tenure, processing fees, and eligibility criteria all shape the affordability of the remainder of a loan. Borrowers should assess these components prudently to unearth the most financially savvy borrowing choices tailored to their requirements. Exploring Loan Choices ● Personal Loans: A versatile financial instrument, personal loans offer adaptability and comfort for various costs, ranging from medical emerg...
Post a Comment
Read more