Securing loan approval at crucial moments of need can prove to be a less than seamless journey for many individuals. The notifications of rejected loan applications often arrive with unclear explanations, leaving you without a precise understanding of the underlying cause. In such instances, having your inquiries addressed regarding the rationale behind the non-approval can prove invaluable.
This process, in turn, plays a pivotal role in enhancing your financial behaviours, thereby increasing the likelihood of encountering similar challenges in the future. We are committed to guiding you through a discussion of prevalent factors contributing to denials and providing actionable insights to enhance your application’s prospects.
What is a personal loan?
It is a type of unsecured loan that individuals can borrow from banks, credit unions, or online lenders to fulfil their all kinds of personal financial needs. Unlike loans that are taken for specific purposes, such as home loans or car loans, these loans can be used for various reasons, including medical expenses, debt consolidation, home improvements etc,.
What are the reasons for the rejection of a loan application?
Challenged Credit History
In assessing a customer’s financial reliability, financial institutions conduct an assessment of their CIBIL scores. Upholding a credit score of 700 and above enhances the likelihood of securing approval. To achieve this, it’s advisable to prudently manage your credit card usage, adopt a consistent approach to loan payments, and promptly settle outstanding obligations.
Excessive Loan Queries
Making a barrage of loan inquiries within a condensed time frame can trigger the rejection of your loan application. Such activity might portray you as excessively credit-hungry or reliant on borrowed funds, thereby adversely influencing your credit score.
Existing Financial Obligations
This approach is rooted in the notion that a lender might perceive an excess of credit-related burdens, potentially leading to the decline of your loan application. Stashfin provides an avenue for debt consolidation of personal loans, enabling you to streamline and settle your debts.
Fulfilling Eligibility Criteria
Stashfin offers the convenience of securing personal loans with a minimum monthly salary of Rs. 18,000. This can be effortlessly achieved by furnishing essential documents such as salary slips and bank statements through their efficient online submission process.
Unstable Employment History
Financial institutions exhibit a preference for steady income sources in the case of businesses and consistent employment records for individuals. Frequent job changes or a pattern of job-hopping not only heightens the risk of loan application denials but could potentially attract elevated interest rates from lenders.
What are some tips to address Loans Rejection concerns?
- Keep essential documents for an improved credit profile ready to avoid any kind of document-related rejections.
- Demonstrate savings and cash reserves to instil lender confidence.
- Consolidate short-term loans before seeking a significant loan to enhance your credit utilisation.
- Regularly review and update your credit report to address any negative aspects.
- Present your full income, including all key accounts, in your application.
By understanding and addressing these factors, you can increase your chances of loan approval and improve your overall financial well-being easily.
How to Get a Loan Online from StashFin?
Nowadays, availing such a loan is super duper easy. It is as easy as ordering food from your smartphone with just a few taps. Follow these steps for a hassle-free small loan from Stashfin:
- Download this small loan app from the Play Store/App Store
- Sign up using your mobile number
- Add your personal details to check your credit limit
- Complete KYC and your loan application is completed!