Many times people need personal loans for emergency needs. Sometimes people apply for loans to shop for something and sometimes to enjoy holidays. Many times banks or NBFCs reject loan or credit card applications. We cannot give you a loan, but we can tell you the reasons why personal loan or credit card applications get rejected.

Bad credit score
Whenever you go to take a loan from a bank or take a credit card from a bank, your CIBIL score is checked. Many times while taking a loan, the bank also tells you that your CIBIL i.e. credit score is low, so you cannot get a loan. The most important reason for loan rejection is having a bad credit score.

Banks/companies may not provide services in your city
Some banks and NBFCs work only in selected cities. They approve credit products only to citizens living in those cities.

Not meeting the income or age eligibility criteria
Banks and NBFCs set income eligibility criteria for credit applications. These income criteria are different for salaried and self-employed individuals.

Frequent job changes
If you change jobs too frequently, the bank will see it as instability in your career. Banks want their personal loan customers to have a stable career.

High DTI ratio
The Debt to Income Ratio is a way to know the EMI according to income before taking any kind of loan. Usually, banks consider a DTI ratio of 35 percent or less to be good for approving a personal loan application.