{"id":40121,"date":"2019-03-06T14:25:05","date_gmt":"2019-03-06T08:55:05","guid":{"rendered":"https:\/\/www.newsilike.in\/?p=40121"},"modified":"2019-03-06T14:25:07","modified_gmt":"2019-03-06T08:55:07","slug":"reasons-for-rejection-of-personal-loans","status":"publish","type":"post","link":"https:\/\/www.newsilike.in\/reasons-for-rejection-of-personal-loans\/","title":{"rendered":"Reasons for Rejection of Personal Loans"},"content":{"rendered":"\n
\"Personal<\/figure>\n\n\n\n

Among all the types of loans made available by financial institutions or NBFCs, the most interesting is the personal loan which by its very nature, is available to anyone for any personal purpose. Normally given without collateral, personal loans carry higher rates of interest and the risk element is much higher here. The incidence of rejectionis among the highest when it comes to personal loans for various reasons as under.<\/p>\n\n\n\n

Bad credit history<\/h2>\n\n\n\n

All lenders look to safeguard their interest by way of ensuring prompt\nrepayment by checking the repayment capacity of the borrower. While documents\nprovided give an indication of the borrower\u2019s profile, a clearer picture\nregarding his creditworthiness is available more accurately from the credit\nreports that all lenders study closely. A history of poor credit card payment,\nirregular EMI payment on other loans as well as too many liabilities throw a\nred flag on the borrower\u2019s financial health and will be a clear indicator\nagainst his creditworthiness and lenders will not hesitate to reject the\napplication for a personal loan.<\/p>\n\n\n\n

Age<\/h2>\n\n\n\n

While most banks and other lenders adhere to some strict age limits,\nsome lenders do make an exception even beyond the stipulated upper age limit of\n65, only if the source of repayment is encouraging by way of a steady income\nfrom a reputed concern.<\/p>\n\n\n\n

Collateral <\/h2>\n\n\n\n

While a personal loan is collateral free, exceptions are made in\neligibility by taking collateral in the form of property or equipment so that\nthe loan is more secured with a better hold on the lender\u2019s assets. Disputed\ncollateral can go against approval of the loan.<\/p>\n\n\n\n

While these are some of the reasons for non-sanctioning of personal\nloans, a look at the purpose for which such loans can be availed of will also\nlead to how rejections can be avoided. A personal loan is granted for any\ngeneral purpose such as a wedding, house renovation, and holidays or even to\nimprove one\u2019s credit rating by paying off a credit card outstanding which has a\nmuch higher interest rate than that of a personal loan. The end use while is\nrarely questioned, mere profligacy after a loan is obtained will be frowned\nupon. <\/p>\n\n\n\n

While most borrowers show their repayment capacity by way of salaries from reputed organisations, some borrowers use the personal loan<\/a> to run a side business assuring a higher cash flow. Most such borrowers pay their instalments on time.<\/p>\n\n\n\n

What to do after loan rejection<\/h2>\n\n\n\n

If a personal loan application is rejected, the borrower can re-apply\neither with some collateral or even by getting a co-borrower with better credit\nrating. Some agree to make a larger down payment, thus effectively bringing\ndown the EMI burden. Most lenders lay down clear criteria on length of service,\nminimum salary etc. for salaried borrowers while ITR for previous years is\nsought from non-salaried borrowers. <\/p>\n","protected":false},"excerpt":{"rendered":"

Among all the types of loans made available by financial institutions or NBFCs, the most interesting is the personal loan which by its very nature, is available to anyone for any personal purpose. Normally given without collateral, personal loans carry higher rates of interest and the risk element is much higher here. The incidence of…<\/p>\n Read More<\/span> Reasons for Rejection of Personal Loans<\/span><\/a>","protected":false},"author":2,"featured_media":40122,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"Layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Reasons for Rejection of Personal Loans #India #personalloan #loan #finance #loanrejection","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[4634],"tags":[],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.newsilike.in\/wp-content\/uploads\/Personal-Loan-India.jpg","_links":{"self":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/posts\/40121"}],"collection":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/comments?post=40121"}],"version-history":[{"count":0,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/posts\/40121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/media\/40122"}],"wp:attachment":[{"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/media?parent=40121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/categories?post=40121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsilike.in\/wp-json\/wp\/v2\/tags?post=40121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}