Is your loan request getting rejected again and again? Expert tells the real reason and gives the solution.
How to avoid Loan Application rejection: apart from the credit score, there are many other reasons why your loan request can be rejected. Let's understand in detail from the expert.
How to avoid Loan Application rejection: You have a regular source of income and can also repay the loan. The credit score is also fine. Despite this, your loan application is getting rejected again and again. Why is this so? Apart from the credit score, there are many other reasons due to which your loan request can be rejected. Let's understand in detail from the expert.
Many times you apply for a loan but your request is rejected again and again by the bank. There are many reasons for this. Atul Monga, Co-founder and CEO of BASIC Home Loan, says, the first reason for repeated rejection of loan application is not having a good credit score or history. This happens when you have not made the payment on time or your debt-to-income ratio is high. Apart from this, if your income is insufficient or your work history is not stable, then the bank doubts your ability to pay.
Application beyond repayment capacity
Atul Monga says, another reason for loan request rejection is lack of necessary documents or not filling the form properly. Due to this also your loan does not get approved. Sometimes you apply for an amount more than your repayment capacity, in such a case also the loan gets rejected. Finally, the burden of loan taken from an existing loan or credit card can also affect the loan application process.
What to do to get the loan approved
Experts say that to ensure that your loan application is not rejected again and again, improve your credit profile. Make sure that your income is stable. Apply only after reviewing all the required documents. Getting prior approval or consulting your financial advisor also increases the chances of a successful loan application.
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