First and foremost pre-requisite before you apply for any loan is to check your credit scores. This report will show intricate facts and minute details like poor loan repayment history as well. Careful practices such as timely EMI payment, not maxing out the credit limit, frequent credit reports, clear previous loans as much as you can before taking a new one. Not just this, applicants also get rejected of loans because of the co-signer’s credit score, so be mindful who you chose as your co-signer!
Not commonly enough so far, but loans get rejected if you don’t qualify their minimum age bar. Generally loans are available for people who are at least 18 years of age, but its always advisable to check the details of the loan applications.
History of income source
Not just age, these applicants also get rejected if the lender feels there’s no stable source of income. Checking of bank statements, salary deposits, how often the applicant switches jobs, everything matters! At the end of the day, everyone wants their money back of course, lenders are very very careful of whom they lend money to.
The requirement is usually at least a total of 1-2 years work experience, and 6 months in the current company
Speaking of how careful the lenders are of lending money, there’s a check on field – your residential area. A quick inquiry and background check before they actually sanction the loan amount to you. Any negative remark can actually hamper your application and the relationship with the bank till some extent, as they’ll have it on record as to why you were denied of the loan the last time.
Too many cards can be a problem too
Surprisingly enough, even if you have the capability and the income to repay the EMIs of your new loan that you’ve applied for, the bank can still reject your application if they don’t feel that you can actually repay the money back to them. Even if you are shelling out half of your salary in loans and you can still manage your way out of it, chances are that your application will never be able to go to the final stage.
Minimum balance charges and bouncing cheques
As mentioned earlier, and a commonly known fact, that a bank account statement of six months to an year has to be submitted (also depends on the type of loan being taken too). Banks charge a fee towards accounts which fail to maintain the minimum balance. No matter how minimal these fees might be, it has a deep negative impact on the credit score. Cheque bounces are a big no no too. Insufficiency of funds and rampant usage of cheques and credit cards, banks cautiously stay away from applicants with such conduct.
The question that might be arising in your head now is, how can you predict these before hand? How can these roadblocks be avoided?
With Loanz Financial Services, sanctioning loans have become a lot easier for borrowers especially in Bengaluru and Mysore. Not all problems can be avoided, but yes we provide personal door step assistance for over 20+ top banks, NBFCs and loan providing companies we work with, which includes ICICI Bank, Bajaj Finserv, HDFC Bank, TATA Capital, Kotak, Indiabulls, Standard Charted, Edelweiss, Axis Bank and many more! We guide you through every step and detail while applying for personal loans, home loans, business loans etc. We simplify the process. And, make you credit confident within minutes.
With over 18,000+ happy customers, we are happy to announce that we have maintained a consistent track record of average loan disbursement of 3 days! Our financial services & solutions are designed keeping your needs in mind. We often get feedback about making our customer’s life simple and hassle free as we facilitate loan process well with a quick query response time. Loanz are now as easy as 1 – 2 – 3 with Loanz Financial Services!