5 Reasons for Which Your Personal Loan Application Can Be Rejected

 Personal loans are the most convenient method in today’s time to seek financial aid in need. Easy application, digital documentation, fast approval, and instant disbursal of the borrowed sum are its key features making it most popular in the market today. Despite being an easy option many people come across a situation when they face rejection on their application for a personal loan. Rejection of the application on an instant personal loan due to a bad credit score is most the common reason among many. But many other factors decide the approval as well as the rejection of the personal loan. What are these reasons and how could we stay safe from them is discussed thoroughly below.

 

1-    Credit score: Instant personal loan on bad credit could be a challenge while borrowing. Bad credit may also increase the time taken in approval of the loan because the lender cross-checks every possible grounds before the disbursal of the loan. To have a sound credit score the best way is to have a higher income with comparatively lesser expenses.

2-    Income stability: The income of the borrower is directly related to the repayment capacity. A regular income and stable source prove that the source of earning is present and the loan can be repaid easily. While a disturbing income record with the unfixed source of income could hamper the chances of approval of the personal loan. The reason behind the quick and easy approval of the loan applied by a salaried employee is also the same.

3-    Job stability: Job stability matters, because the source of income matters. Having a proper job with a good period of service gives the hint of everything going well with earning of the borrower. Switching multiple jobs and not sticking to one shows that the borrower has stability issues and could be a defaulter.

4-    False information: In the age of digitization and online application everything has become faster yet the importance of verification remains the same. Documentation and verification are two very crucial stages of approval of a personal loan. Hence, giving the right credentials, with complete transparency is mandatory. In this segment having the proper records also plays an important role because the first thing it is needed and second it shows the seriousness of the borrower towards official work.

5-    Multiple loan inquiries: Every time a loan inquiry is made, it is recorded in the database of the loaning or banking system. An inquiry is also registered with the details of the person who makes them. To lenders this matter, because many inquiries show the financial instability of the borrower and confusions one may have while deciding on taking a loan.

    

This confusion could also be because the borrower may be insecure about his/her repayment capacity or even the need is not serious. So do proper research and ask as many questions as you have. Going to the inquiry section once or twice would be enough to beat the risk of rejection.

These 5 points are simple yet very important to save you from the rejection from a personal loan. Keeping these in mind and keeping compliance with these surely helps in boosting the chances of approval in the loan. If you are looking for a same day personal loan, consider applying with FlexSalary Personal Loan, you could get approved up to 2 lakhs on the same day you have applied for the loan.