Gone are the days when you had to wait indefinitely before buying a home, spending on education or planning a wedding. You can now depend on IndusInd’s Personal loans and, by following a few simple steps, you will be on way to comfortable consumer banking. While personal loans are unsecured loans and you only need to submit simple documentation for the same, there are some cases when a personal loan could also be denied to an applicant. It is important to know these situations beforehand so that these mistakes can be avoided.
These are some possible reasons for the rejection of a personal loan:
Basic Qualifications Are Not Met
These qualifications are very important for a personal loan application:
If you are a salaried employee: Your minimum age at the time of application should be 21 years and the maximum age should be 60 years. Your minimum net monthly income should be INR 25000. You should have completed a minimum of 2 years in employment and a minimum of 1 year in your current organisation.
If you are a self-employed professional: Your minimum age at the time of application should be 25 years and maximum age should be 65 years. Your minimum annual net income post tax should be INR 4.8 lakh and you should have 4 years of post-qualification experience.
If you are a self-employed individual: Your minimum age at the time of application should be 25 years and maximum age should be 65 years. Your minimum annual net income post tax should be INR 4.8 lakh and you should have 5 years of post-qualification experience.
Financial Track Record
If you have accumulated multiple credit card debts or have been unable to keep up with your Equated Monthly Installments (EMIs) and have even missed a few, your chances of getting a personal loan will be low.
Repayment of Too Many Loans
If you are in the process of repaying previous loans and your income is insufficient, the bank could reject your loan application on the grounds of possible ineffective repayment of the new loan.
Situation of Job Stability
Financial institutions place a lot of emphasis on job stability. If you have switched many jobs in the past or have been with your current organisation for less than 3 years, many banks might deny your loan application on the grounds of financial instability.
Your Loan Application Has Been Previously Rejected
Do not apply simultaneously to many banks for a personal loan as rejections are recorded. This would reflect on your application when you apply for a personal loan at another financial institution.
One of the most important factors that you should keep in mind to avoid the rejection of your personal loan application is the evaluation of your net worth and your subsequent commitment to repaying the personal loan amount. Check in advance about your credit reports, back-up funds (for EMI payments) and anything else that could hamper your personal loan application.
With no doubt, if you remember these key steps, you can be granted a personal loan.