We all have faced rejections plenty of times in life. It could be your college application rejection or working visa being rejected or banks rejecting your personal loan application due to no credit history. A digital lending platform, such as Loan Singh, although tries to check and re-check the borrower worthiness for a personal loan, there are still circumstances wherein a rejection is the only option. We have written at length about loan rejections since the time we started with this Blog. Despite having one of the most clean, easy to understand and time saving user experience, we still find incomplete applications or applications that deserve to be rejected. Through this article, we will let you in on our rejection secrets. The reasons are plenty, but we will discuss only 6 for now. Before we do that, let us see why a personal loan is so coveted when it comes to financial emergencies.
Personal Loan in Times of Need
You can avail a personal loan for a number of reasons, such as
- Medical expenses
- Second hand car
- House repairs (with tax benefits)
- Online shopping
- International holiday travel
- Job relocation
- Home improvement
No collateral means you can apply for a personal loan for the above purposes and more; even if you do not own any assets. No loan guarantor is needed. No storage needed for piles of paperwork.
Personal loans are a superb sure shot funding option to tackle your financial needs. With no collateral, Loan Singh looks at your credit score to gauge if you are personal loan worthy or not.
You are a working individual and chances are that your salary will continue to improve in the forthcoming months and years. Use this impetus to plan your repayments to avoid any delay in repayments and defaults. Late payment penalties will also hamper your credit score.
Speak to your credit institution about the EMI due-date, repayment method and penalties that can be levied in case you default on your personal loan EMI repayments. Your credit bureau score acts like your financial curriculum vitae. So, if your credit history is without blemish, you have a great chance to get a personal loan approved.
How to Apply for a Personal Loan?
The process is simple and completely online. You need your PAN Card and latest 6 months bank statement. The statement has to be in PDF format only. You can apply for the personal loan by going to Loan Singh’s Get Started page.
Get Started Page – Select ‘PERSONAL LOAN’ from the drop-down and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID and corporate email ID
Social Authorization – Connect your Facebook, Google+ and LinkedIn profiles for discounted rates
Profile Page – Fill in your name, gender, father’s name, number of dependents and PAN Details. We use your PAN Card Number to check your Credit Score and as a KYC document.
Address Page – Choose your type of residence; mention your street address, city, state and pin code.
Job Profile Page – Mention your current designation, total work experience, company name, highest qualification, last institution attended and monthly salary.
Financials page – Upload your latest 6 months bank statement either from your computer, GMail account or net-banking account.
Auto Debit Page – Provide permissions to your bank name, account number and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss-out on any loan EMI repayments.
6 Reasons Your Personal Loan Application Is Rejected
Now that we know why a personal loan is your knight in shining armor, let’s now look at reasons why your personal loan application can be rejected. This is a way to learn about personal loan rejection and what all you can do to ensure that the next time when you login to www.loansingh.com, you don’t close the tab without the ‘Loan Approved’ message.
It gets difficult for us to assess how many of the borrowers who left their application incomplete were actually interested. Many a times we receive applications where the applicant does not provide us with his/her PAN, but is actually eligible thanks to a good credit score. Ensure that you complete the application form on Loan Singh’s Get Started page. Help us so that we can help you. Trust us, just as we want to trust you.
Borrowers with low income levels will be rejected outright. This is because we, at Loan Singh, know what would be your monthly personal expenses that you would need to earn before being able to repay the loan EMIs. Only borrowers who earn a minimum of Rs.15,000 would be considered for a personal loan with Loan Singh. You need money to spend for yourself as well. If you are barely saving enough for yourself, how can you pay the loan EMIs on time?
Damning Credit History
You may be a highly salaried individual capable of paying the loan EMIs now. But, if your prior repayment history is default strewn then there is no way you can convince us about your prompt repayments in the future. A personal loan involves no collateral, so your repayment history is the only indication of your past prudent credit responsibilities. Banks reject loan applicants who have never even availed a loan before. If you are salaried for the last 3 months, this will never happen at Loan Singh.
Poor Credit Score
The credit score is ranged between 300 and 900. The better the score, the better your chances of getting the personal loan approved. A good credit score is dependent on prompt EMI repayments, credit card statement and maintaining a good credit mix.
Not Old Enough
Age is a factor that can lead to your personal loan being rejected. A college student who desperately needs to buy an iPhone cannot apply for a personal loan just because it involves no collateral. A borrower expecting to get a personal loan via Loan Singh needs to be of at least 21 years of age.
Being honest with your financials is paramount. Loan Singh is a digital lending platform that does not involve any human intervention while checking and verifying your documents. That is why the bank statement has to be submitted in PDF format only. Even better if the statement is forwarded to Loan Singh directly from your net-banking account. Borrowers also try to sneak in fictitious or tampered financial information to conceal their past defaults or try to portray a higher average daily balance, this should not be done and the application would be out-rightly rejected.