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Why am I not getting approved for a personal loan

If your personal loan application is getting rejected, it could be due to one or more of the following reasons:

1. Low Credit Score (CIBIL Score)

  • Most lenders require a credit score above 700 for approval.
  • Missed EMI payments, defaults, or high credit card usage can lower your score.
  • Check your CIBIL report for any errors or negative remarks
    • Need help? Connect to our loan advisor.

2. Insufficient or Unstable Income

  • Lenders check if your monthly income is sufficient to repay the loan.
  • If you have low income or an unstable job, the lender may reject your application.
  • Self-employed individuals with irregular income may face difficulty in getting approved.

3. High Debt-to-Income Ratio (Too Many Existing Loans)

  • If you already have multiple loans or high EMIs, lenders may consider you a high-risk borrower.
  • Ideally, your total EMIs should not exceed 40-50% of your monthly income.

4. Frequent Loan Applications

  • Applying for too many loans in a short time reduces your credit score.
  • Each rejected application affects your chances of getting future approvals.

5. Employment-Related Issues

  • Some lenders have restrictions on certain employers or job types.
  • If your company is not listed or considered risky, your loan may get rejected.

6. Errors in Documents or KYC Issues

  • Incorrect or missing information in your PAN, Aadhaar, or income proof can lead to rejection.
  • Ensure your details are up to date and match your official records.

7. Location or Lender’s Internal Policies

  • Some banks do not provide loans in specific geographical areas.
  • Certain internal policies may lead to rejection even if you meet eligibility criteria.

What You Can Do Next:

✅ Check your CIBIL score and improve it if necessary.
✅ Reduce existing debts before applying again.
✅ Choose a lender that matches your income range and profile.
✅ Ensure all documents are correct and updated before reapplying.
✅ Wait a few months before reapplying to avoid multiple rejections.
Need help? Connect to our loan advisor.



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