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4 Reasons for Personal Loan Rejection and How to Avoid Them

  • Highlights

  • If you have a low credit score, work towards boosting it

  • Check and submit all the right documents required

  • Prove that you have a steady income to pay EMIs

Applying for a personal loan is easy. All you need to do is fill in your basic details and submit them online to get same-day or instant approval. However, this fast application process in itself does not guarantee approval. Since your lender verifies your application before approving it, ensure that you fill in the details correctly. Apart from this, knowing what can lead to your personal loan application being rejected will help you ensure that you don’t make those mistakes.

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Additional Read: Personal Loan Fees and Charges

1. Applying with a low credit score

A low credit score is reason enough to have your personal loan application rejected. A credit score can vary from 300 and 900. The higher your score, the better are your chances of getting personal loan approval. A score of 750 and above is the ideal score for you to get a quick sanction. Here's how you can get a personal loan with bad CIBIL score. So, to boost your credit score, avoid erratic loan payments, pay off outstanding debts, and don’t overuse your credit card.

2. Submitting incomplete documents

Not submitting the right documents that prove your eligibility for your personal loan can lead to rejection. So, pay attention to the loan application guidelines before you submit your documents. Adhere to the list of documents that you need to submit and keep a checklist handy to ensure that you don’t miss out on any. When you choose an Online Personal Loan from Bajaj Finserv, you only have to complete basic document submission. Moreover, you can submit your application online, get approval within minutes, and money in your bank in as soon as 24 hours!

Additional Read : What is Repo Rate and How Does Repo Rate Impact On Personal Loan?

5 things you can get on EMIs for your wedding

Documents required for your personal loan

3. Not having a steady source of income

Lenders pay attention to and check your ability to repay. So, if you don’t have a steady job, it is likely that the lender will assume that you don’t have the financial means to service the loan in a timely fashion. So, avoid applying for a loan when you have just switched jobs. In the absence of a job, ensure that you have other sources of income, such as interest payouts or rental income, that will help you make EMI payments regularly. This will help you secure a personal loan easily.

Additional Read: How to Get a Loan without a Job

4. Not matching other eligibility criteria

Apart from your identity and income, you need to fulfil other eligibility criteria set by the lender, such as being the right age. Besides, you must also be in a city that the lender operates in to get the loan. Since these factors are out of your control, your best bet is to choose a well-known lender that offers pan-India coverage.

Armed with knowledge of what not to do and how to rectify shortcomings in your personal loan application, you are sure to get a quick sanction.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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