ALL >> Investing---Finance >> View Article
4 Causes For The Personal Loan Rejection
A personal loan also known an as consumer loan is sanctioned and used for purposes of medical, family or household purposes. This loan can be either secured or unsecured. This financial aid is sanctioned on the certain factors that are taken into account. However, during the sanctioning, there is a possibility of the loan application getting rejected. In this article, we give you X reason why.
1. Bad Credit Score
Before you begin your application, the bank or financial institute will check your credit history for any disparages or problems. Even if there is a remark in your CIBIL report, it can lead to a cause for rejection. Thus check your scores before you begin your process for the request of the loan. If you are applying with a co – applicant, the risks are higher, as both the applicants credit history is taken into account. Thus this is one way to avoid getting a rejection on your request for a personal loan
2. High DTI Ratio
Certain banks follow a system that measures your debt to income ratio called the DTI ...
... ratio. This ratio measures how much of your income you are using for you EMI payments if you have any currently. If the number is high, than it indicated you are already over leveraged and will not be able to manage the extra EMI payments. The ideal way to avoid this problem to ensure that your ration is below 50% to ensure that you have a higher chance of getting your submission sanctioned.
3. Stood Guarantee For Defaulted Loan
If you have stood as a guarantee for someone else’s financial aid application as a guarantee, you must careful as it may affect your financial history. When you sign as a guarantee for the applicant, you must make sure that the individual has the ability to repay the loan without any problem. If the applicant fails to repay the loan, you will have to step in and repay the sum. If in the situation you are unable to repay the sum, it will affect your CIBIL scores, thus reducing your chance for acceptance for a request for loan.
4. Address Is On A Default List
Normally, for an application for any financial aid, the bank will ask for the applicant’s address. In the course of time, if there are any problems with the financial request, the address registered will be blacklisted. If you have just recently moved into a home with an address that has been blacklisted by the bank, there is a high chance that your personal loan application will be rejected. Ensure that the bank has the corrected address registered under your name before you proceed further with the application.
Author Bio :- Neha Sharma is a finance student who loves to write about personal loans. She is delighted to share relative information regarding the process and application of the personal loan.
Add Comment
Investing / Finance Articles
1. Innovative Accounting Solutions For Modern BusinessesAuthor: Business Tax & Money House
2. Can Someone With Bad Credit Still Get A Short Term Loan Online?
Author: Jockey Ferguson is a financial adviser of Fast Pay
3. How To Manage Cash Flow For Online Retailers
Author: Thomas Edward
4. A Detailed Guide Set Up A Company In Ireland
Author: LSC and Partners - Corporate Tax Consultancy LSC
5. Rupay Credit Cards: Your Ticket To Exclusive Rewards And Benefits
Author: Priya
6. Top Upcoming Telegram Airdrops You Don’t Want To Miss!
Author: Cryptoreach
7. The Art Of Diversification - Building A Robust Portfolio For Long-term Stock Market Performance
Author: Broker Analysis
8. 10 Effective Strategies To Boost Real Estate Lead Generation In 2024
Author: Horizon Consultants
9. How To Choose The Best Financial Advisors In Indianapolis For Your Future
Author: Kurt Supe
10. What Are The Requirements For Applying For A Personal Loan?
Author: divya negi
11. Investment Banking Companies In Hyderabad: Your Guide To Financial Excellence
Author: Verity knowladge solutions
12. No Credit Check Payday Loans
Author: Daniel
13. A Complete Guide On All Cfo Services
Author: Vibhay Ranjan
14. Navigating Success: The Role Of Venture Capital Deal Flow Management Software
Author: Fundwave
15. Streamlining Investment Strategies: The Rise Of Fund Management Software
Author: Fundwave