If you are a woman looking to take a personal loan, it is imperative to say that one needs to be careful while making the loan application.
But it can help you a lot if you get to know of the common reasons why personal loan applications are rejected by lenders. That is because you can then take necessary precautions when applying for the loan.
So lets see common loan rejection reasons:
Insufficient Income: Lenders want to be sure that borrower has sufficient income to cover monthly EMIs in future. If your income is large enough to allow monthly EMIs and there is job stability, your application will not be rejected. If you are already paying EMIs on other loans, then your income will be reduced by these existing EMIs and lenders will evaluate your loan eligibility accordingly.
Poor Credit Score: If in past, your repayments have not been regular, then your credit score will reflect it by being low. Skipping EMIs, defaulting on loans, late payment of bills, are all indications of bad credit track record and reflect on your credit ratings. All lenders will only lend to those who have a good enough credit score.
Too Eager to Borrow: If you have taken quite a few loans in recent months, then some lenders might not be willing to lend you more.
Older Rejected Loans: If your applications have been rejected in past, then it will reflect in your credit history. Borrowers assess the reasons for such rejection and see whether there is any improvement on the factors or not. So unless there is a significant improvement in credit score and repayment history since last rejection, chances of application being approved are low.