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Personal Loan: If these 8 mistakes are made, you will not get personal loan, banks will reject your application immediately – Personal Loan Application Rejection Reasons Common Mistakes That Can Stop Your Loan Approval Process

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Personal Loan: It is common to take personal loans in the festive season, but a small mistake can reject the application. Know the 8 reasons why banks immediately reject your loan and how can they be avoided.

1. Poor credit score
The biggest reason for the loan rejecting is a bad credit score. If you have not repaid the credit card bill on time or missed the EMI of the loan, the score falls. Usually, the score below 650 is at risk. In such a situation, they reject your loan application.

2. Election of wrong lender
Every bank or NBFC has its own rules. Banks give loans at low interest but their conditions are strict. On the other hand, NBFCs and Fintech companies give loans on a slightly easy criteria but the interest is high. The loan can be rejected when choosing a wrong lender.

3. incomplete application
It is necessary to have all the necessary documents in the loan application. If you do not put papers like Aadhaar, PAN, Salary Slip or Bank Statement, then the loan can be rejected. Banks do not rely on the application with incomplete information. Therefore it is necessary to submit the entire paperwork.

4. New Credit Report
Many times the reason for rejections is that you do not have a credit history. That is, you have never taken a loan or credit card. In such cases, banks are unable to assess risk about you. As a result, your application may be rejected.

5. The burden of more debt
If many loans are already running on you, banks avoid giving new loans. They are afraid that you will not be able to pay EMI on time. It also has a negative effect on your credit profile. Due to this, the loan can also be rejected.

6. Income and job stability
Banks and NBFCs pay attention to how stable your income is. If the job has changed repeatedly or the income is very low, then it is difficult to accept a loan. Lenders do not trust such a customer. Stable income is necessary for loan approval.

7. To inquire more
Many people apply loans repeatedly on different banks and apps. This gives a hard inquiry on your credit report. Being more inquiry affects both score and trust. This is also a reason for the loan being rejected.

8. Document disturbances
Sometimes the information given in PAN, Aadhaar or bank statement does not match. The small mistake of the name, date of birth or address also becomes a problem. Banks consider it a risk and reject the loan. So before the application, check all the documents correctly.

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