A personal loan is called a multipurpose loan. Which means we can use a personal loan for any usage. A personal loan can be taken for marriage, medical emergencies, etc.
Personal loan processing time has decreased over the years. But the approval ratio is still less as reputed Personal loan providers in Delhi we are going to discuss reasons for personal loan rejection even if you have good CIBIL.
When you have too much debt:
When you apply for a personal loan, banks and non-banking financial institutions look for your credit history. If you have already taken too many loans and are paying EMIs, credit card bills, then there are chances banks might think you cannot pay EMI in emergencies. So this is the first reason for loan rejection if you have good CIBIL.
Each lender has specific income criteria for a personal loan. If your salary does not match the lender’s criteria, then banks may disapprove of your application.
A credit report is not updated:
You have closed your debt, but that is not updated in your credit report. This depends on how often your creditor reports your credit score to the credit bureau. Hence, if your credit report is not updated at the time of loan application, there might be chances of rejection.
Mistakes in application:
If you make mistakes when filling the application form, your application will be rejected at the time of verification.
If you have defaulted card payment or Loan payment a long time back.
If your recent track record is good, some lenders do not give a loan to someone who has defaulted loan time back.
If you recently joined a new job:
Some lenders do not provide personal loans if you are new to the job at the time of application. You have to complete at least three months for a specific company or organization. Some lenders offer a personal loan in Delhi if you are working for at least six months for a particular organization.