A personal loan is one of the most preferred financial offerings that are available these days. If you are eligible, then you can avail of a higher loan amount stretched over a tenor of 1-5 years to meet multiple goals.
However, many people apply for an online personal loan, but their loan applications get rejected. There may be many reasons for it, such as not a strong Credit Score, documents and more elements.
Hence, if you need a personal loan instantly and don’t want to get rejected, then here are some easy tips to avoid it. Go through this quick post and learn more!
Ensure you have a strong CIBIL Score
The first thing that lenders see while processing your personal loan application is your Credit Score. It works as a mirror of your creditworthiness to a lender. If you want your personal loan application approved, then you need to have a higher CIBIL Score. If you have a CIBIL Score in the range of 70—750+, then you will not face the fear of loan rejection. What’s more, lenders may also sanction your request at a lower personal loan interest rate. To ensure that you have a robust Credit Score, you should pay off your existing loan and credit card EMIs on time.
Check out the lender’s personal loan eligibility criteria
Another thing to avoid the rejection of your online personal loan application is meeting personal loan eligibility criteria along with key documents. Have a look at some standard personal loan eligibility criteria and documents that a lender may need:
- You should be aged between 23-55 years
- You should be a resident Indian citizen
- You should be a salaried employee with an MNC, public or a private company
- KYC documents
- Employee ID Card
- Last 2 month’s Salary Slips
- Previous 3 month’s salaried bank account statement
Before applying for an online personal loan account, ensure that you meet the eligibility criteria of your proposed lender to avoid the possibility of rejections.
Avoid applying for too many loan applications at a time
It is a mistake that many loan borrowers commit. They apply for a personal loan with too many lenders at a time. Each time a lender processes a loan application, it brings down your CIBIL Score. Also, applying for a personal loan with too many creditors at a time may lead to the rejection of your request. It is because lenders may assume that you are credit hungry and need money for playing con. They may not consider you safe to be awarded the personal loan. Hence, you should make it a point to apply for a personal loan with only one lender at a time.
Make sure that you are earning enough income
If you are not earning enough income to support the EMI payment of your personal loan that you wish to avail, even then your loan application may be rejected. Since personal loans are collateral-free, lenders see if you earn to pay off the EMIs. In case if they don’t find you fit, they don’t sanction the personal loan online application. You can utilize personal loan calculators to determine how much loan your current income will fetch you. Depending on the same, you can apply for an eligible amount to keep off rejection chances. calculate your loan EMI using an online EMI calculator. A personal loan is one of the easiest to avail financial facility that comes with instant approval and money disbursement within 24 hours. The only thing is that you should meet eligibility conditions and employ the discussed tips to avoid rejections.
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