Loan application rejection reason: Many times money is suddenly needed. The reason for this can be marriage, buying a house, or a car. In such a situation, when there is a budget, everyone thinks of taking a loan. Today, taking a loan (Bank Loan) has also become easier than before. But still, some terms and conditions have to be followed to take a loan. If you fail in the rules made by RBI, then the bank refuses to give you a loan.

Now there is no mercy for those who do not repay the loan, RBI has made strict rules.

Getting a loan from a bank depends on many factors. Such as CIBIL score, credit history, salary, etc. Whenever applying for a loan, the bank checks the entire credit history of the borrower and then decides whether the loan will be given or not. However, despite this, many times even after all the paperwork is done, the loan application is rejected (reason for loan rejection). Today we will tell you about those six things, due to which the loan application is rejected.

If you work on these 6 reasons (6 biggest reasons for loan rejection) and improve them, then in the future whenever you need money, you will easily get a loan (Loan approval tips) from any bank in the country without any problem. Let's know -

Bad CIBIL score -

First of all, the CIBIL score is the most important for taking a loan. Based on CIBIL score, banks decide whether the loan should be given to the borrower or not. A credit score of 700 or more is considered good. If your CIBIL score is less than this, then banks can reject the loan application. Yes, even if the banks agree to give the loan, you will have to pay more interest. The way to improve the credit score (how to improve cibil score) is to pay the credit card bill on time and repay the loan on completion of the term.

Not having sufficient income -

If you have applied for a personal loan or any other loan in a bank and such a case if the loan amount does not match your income, then your loan application can be rejected. If you do not have a regular source of income, then also your loan application can be rejected.

Wrong information in loan application -

If you have not given the correct information in the loan application (loan application process) or if there is any error in the information given by you, then also your loan application can be rejected. If you do not give the correct information in the loan application, then the bank will never give you a loan. Therefore, whenever you apply for a loan in any bank, then definitely give correct and complete information.

Changing jobs frequently -

If you do not have a stable job, from where you can be guaranteed regular income, then also the banks hesitate to give you a loan. In such a situation, banks feel that you will not be able to pay the loan installments on time and will default on the loan. Due to this fear, banks reject the loan application. If you want a loan without any hassle, then do not change jobs very frequently. Because in the eyes of the bank, this is not a good thing.

Previously outstanding loan -

Usually, many times people get stuck in a financial crisis after taking a loan and are not able to repay the installments on time, due to which their EMI bounces. In such a situation, they think of repaying the loan by taking another loan and applying for a new loan. But banks refuse to give loans after looking at the credit history.

There can be many reasons for loan application rejection -

Apart from the reasons given above, there are some other reasons why your loan application can be rejected. Age, citizenship and educational qualification can also sometimes become the reason for your loan application being rejected (why my loan application is getting rejected).

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