Personal loans are not difficult to obtain nowadays. If you are eligible for a personal loan then, fortunately, there are so many banks as well as NBFCs who are willing to give you a personal loan at a lower interest rate. The process of applying for a personal loan is also simpler, all thanks to digitization. You can check for your eligibility instantly and also calculate the EMI as well. In-fact, some of the banks have also made the documentation process easy. If everything goes well, then your money gets credited into your account-instantly. But, there could be a few who fail to receive personal loans fro many of the banks or NBFCs. We will tell you 5 such reasons due to which your personal loan is getting rejected or declined.
• You are not using your credit card anymore
Banks check for your CIBIL score to approve your loan application. The CIBIL score is based on the number of transaction you have done and also the payment. Let’s say you have a credit card with you but you never used it. In the event that you are not using your Credit Card at all then it will affect your CIBIL. Simultaneously, you are suing your credit card but never making the payment on time. The best thing to do is to use your credit card at least once in 3 months and pay for the same within the given time frame. Don’t let your CIBIL score get affected.
• The house you are living in is not in yourname
Let us explain this with an example. Say you have applied for a personal loan and you meet all the criteria, everything is going well. But you stay with your brother and you don’t have a valid proof of address. Lenders will always ask for proofs of residence. If you don’t have that then your application is bound to get rejected. Solution to this problem is to get a rental agreement in your name which will prove your residence.
Lenders will also check for the ITR returns. If you have ignored filling the Income Tax Returns then yes, the lenders will deny your application. There are many banks as well as NBFCs who keep ITR return as one of the conditions. Hence, always pay your tax on time and don’t forget to fill the ITR form too.
• The address doesn’t match
If your address proof doesn’t match with the one which you have stated on the application form then again your application is bound to either get delayed and in worst case scenario it can get cancelled. Many people keep moving and shifting, the best thing to do is to update it on your Aadhaar card, passport, as well as PAN card too. Hence, never do this mistake.
• Gross vs Net salary
Another mistake that can delay your application or reject it is when you make a mistake of quoting your gross salary as your Net salary. Lenders will always check at their end your credibility to pay the EMI on a monthly basis. Therefore, always mention your Net salary and not the Gross.
So, here are the 5 reasons why your application for a personal loan is getting delayed or rejected. Never make these 5 mistakes and nothing should come in your way in obtaining a personal loan.