Ways to overcome Personal Loan rejection

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Personal loans have become the wise choice for most people in the past years, owing to its multipurpose usage. The funds availed from personal loans is not limited for any specific usage, hence it can be utilized for overcoming monetary shortfall or to fulfill one’s desires. These days applying for personal loans is no more a herculean task and can be easily applied through online portals with only a few documents. However, the fast approval process doesn’t guarantee approval.

Personal loans are unsecured loans that a lender approves after strict scrutiny. The lender verifies each and every detail before approving the application to ensure minimal default on the same. Therefore, it is important to know and understand the reasons to overcome a personal loan rejection. Below are a few ways to avoid and overcome the mistakes, which can lead to personal loan rejection.

  • Submission of incomplete documents – Follow the guidelines of document submission, by keeping the checklist handy. Ensure that you don’t miss out on any of the important documents. It becomes easy for the lender to assess the loan application when all the documents are in place. Non-submission of complete documents is one of the primary reasons for getting the loan application approval. With the online application process these days, it has now become much simpler by simply uploading the scanned copy of documents. So, before the submission of documents make sure to tick off all the items mentioned on the checklist.
  • Applying with the low credit score – A credit score plays a major role in the approval or rejection of the loan application. A healthy credit score may win you a better interest rate on personal loan, on the other hand, a poor credit score may be the reason for the loan application rejection. As personal loans are unsecured loans, the credit score is the key factor that a lender considers in assessing a loan application. Therefore, it is advisable to apply for a personal loan after paying off the debts and clearing off the pending bills. Make sure to keep the credit score updated. As much as possible avoid erratic loan payment and over usage of credit cards.
  • Unmatched eligibility criteria– There are various eligibility criteria laid down by the lender which needs to be fulfilled to apply for the personal loan. If anyone of the eligibility criteria does not match and is unfulfilled, there are high chances that the loan application will get rejected. Make sure before applying for the personal loan, check if you are falling under the eligibility criteria laid down by the lender.
  • Irregular income flow – The most prominent factor which matters to the lender, is the repayment of the debt. If there is no steady income flow of the applicant, and in absence of other parallel sources of income, the lender might reject the loan application. It is important to have other sources of income for the repayment of the debt, which will create a positive impression on the mind of the lender to grant the loan. Proving a healthy financial means of repayment ensures repayment of the debts with less risk.

If all the above-discussed points are dealt well ahead in advance, the chances of loan rejection can be overcome to a great extent. Although the final discretion lies with the lender, following the guideline appropriately will have the backing of a positive loan application with minimal chances of rejection.

To get easy access to cash, to manage the financial shortcomings or to achieve the ambitions of either traveling or plan a grand wedding, it is advisable to look for the lender with the best options to offer. IndusInd bank personal loan offers the best features which can be availed by customers to manage the temporary financial shortcomings.

Let us have a look at the features and benefits offered by IndusInd Bank on Personal Loans:

  • It has simple documentation, speedy disbursal, quick processing.
  • Flexible repayment tenure.
  • The convenience of applying for the loan online, and availing doorstep services by the representatives.
  • Best in class personal loan interest rates.
  • No collaterals to be pledged as security.
  • Option available of the balance transfer.
  • Easy, convenient, and various modes of repayment options available.

 Eligibility criteria to apply for a personal loan at IndusInd Bank

  • An applicant should be a resident of India.
  • The minimum net monthly income should be Rs 25,000 and above.
  • Should have completed a minimum of 2 years in employment and a minimum of 1 year in the current organization.
  • Should be of the age criteria of 18 years and above.
  • At the time of the loan, maturity should be 60 years of age or retirement age, whichever is earlier.

Documents required to apply for a personal loan at IndusInd Bank

Documents for Salaried Employees:

  • Identity proof- Aadhaar Card, Voter Id, Driving License, Passport, etc
  • Address Proof – Aadhar Card, Driving License, Passport, Rent Agreement, etc.
  • Income Proof – Past 6 months bank statement
  • Latest salary slips
  • Latest Form 16

Documents for Self-Employed Individuals

  • Identity Proof- Aadhaar Card, Voter Id, Driving License, Passport, etc.
  • Address Proof – Aadhar Card, Driving License, Passport, Rent Agreement, etc.
  • Proof of Qualification- Highest Professional Degree.
  • Latest 2 years ITR, along with computation of income, Balance Sheet, Profit and loss account, certified by C.A.
  • Profession continuity proof.

Personal loan with IndusInd bank is available at the interest rate of 11.25% onwards. You can take the help of IndusInd Bank personal loan EMI Calculator, to evaluate the eligibility and to calculate the monthly cash outflow. You only have to feed the interest rate, tenure, and loan amount and the calculation will be displayed in front of you. It will help assess the eligibility and let you decide on the loan amount to be borrowed.

It is wise to go for the required loan amount which is required and not go for the eligible amount. It will unnecessarily increase the burden of debts and will lead to higher monthly cash outflow.

So, keeping the above points in mind, applying for the personal loan with the chosen lender will turn out to be a game changer for you, when in need of the cash to deal with the temporary financial crunch.