Personal Loan is a loan that comes handy for handling different personal needs. However all of the people cannot access them for a one or a different reason.

A person do not have an idea that when he misses his 2-3 EMI’s of the already running loan or make any loan settlement can lead to his rejection for unsecured loans.

 Once your application for verification for the Personal Loan gets logged in, various processes take place on the basis of which the loan application gets rejected or gets approved.

 

CIBIL Score:

CIBIL Score is the numeric parameter that determines the credit worthiness of the person.  Thus, your credit score must be at least 750 and above in order to approve your personal loan request. That is why a person must buy his credit report prior to the application.

 In case your Loan Application gets rejected, you will not be able to apply for any loan again at least for 6 months.

Documents Fabrication: When people are in the dire financial need, they tend to lose the sight when they put all of documents together such as income slips in order to be eligible for high loan amount. When the information in the documents gets mismatched, this information will get passed onto another bank results in the end of chances for applying the loans at other places.

Repaying capacity is not sufficient enough:

For a borrower who is already paying an EMI from his salary, banks tend to see such cases with huge caution. This is because the rest of income has to be used for living expenses as well.

No Loans and credits:

• If you do not have any running loan or any credit card, the CIBIL score is usually -1  and 0.

• -1 shows no credit history and 0 shows that the transactions are yet to be updated in your report.

Solutions to avoid Personal finance application rejection:

Here are some of the Solutions to avoid application from rejection

• Maintain positive cibil score: Whether it is any loan or any credit card payment, try to pay it on time to have an acceptable credit score. Do not try to do any sort of loan settlements as these can hamper your CIBIL score.

• Have Credit Cards: Your loan application may also get rejected when you do not have any credit history, so try to have credit cards on your own.

• Cooperate Fully: Cooperate with the bank in all of the loan process.

• Provide accurate documents: In order to avail high loan amount, do not try to fool the bank by showing high salary amounts in salary slips. It gets passed on to all of the banks reducing your chances of getting the loan in the future.