Rejections are a part of our lives. There are plenty of rejections that we face on a regular basis. These include rejection of a work visa, rejection of credit, etc. These rejections can hurt, but we as salaried individuals need to grow over these and keep moving forward. Loan Singh’s digital lending platform garners thousands of personal loan applications on our website.
Not everyone is approved for a personal loan. It all depends on the applicant meeting our eligibility criteria. Sometimes rejections occur due to the borrower’s lack of knowledge or plain ignorance. It is best advised that you read our FAQ and Finance Blog to understand the eligibility criteria and documents needed at Loan Singh. Loan Singh’s digital lending platform serves salaried individuals who have never availed any credit before. It is understandable that some of you may struggle to get a personal loan approved, even though Loan Singh’s application process being so easy.
Personal Loan Features
A personal loan is a type of unsecured credit that is generally availed to meet urgent financial needs. Being an unsecured credit, personal loan requires no collateral or mortgage. The next question you would have is, “With no collateral, how does Loan Singh trust a borrower?”
Loan Singh does not meet the borrower face-to-face like traditional lending solutions. Everything from loan application to amount disbursement happens online. To mitigate the prospect of risk, Loan Singh looks at your creditworthiness. If you have a good credit history, you have a better chance of avoiding a personal loan rejection with Loan Singh. Your credit history tells Loan Singh how prompt you have been with your past loan or credit card related responsibilities. Availing a personal loan via Loan Singh is advantageous because there is minimal paperwork involved. No time is wasted in cross-verifying any paperwork. Your employment status and income help determine if you are capable of paying the EMIs on time. The personal loan amount along with interest rate is calculated for the entire tenure, and in case you want to clear-off the loan before tenure completion, no prepayment penalty is levied by Loan Singh.
The purposes for availing a personal loan are aplenty. Some of them are
- Medical expenses
- Second-hand car
- House repairs (which offer tax benefits, as well)
- 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.
You are a salaried individual and chances are that your salary will continue to rise in the forthcoming months & years. Use this impetus to plan your repayments to avoid any delay in repayments & defaults.
Just like in banks, there is a set of eligibility criteria at Loan Singh, as well; albeit a shorter one.
Indian and salaried – You must be an Indian citizen and earning a minimum of Rs.15,000 per month.
Good score and age – Have a good enough credit bureau score to help Loan Singh gauge your repayment capabilities. If you do not have a credit history, then you must be salaried for at least 3 months. You must be at least 21 years of age.
Swift processing – At Loan Singh, everything from application to disbursement happens online. With only Aadhaar, PAN and Bank statement/net-banking credentials you can apply for a personal loan and pay for your emergency requirements.
No collateral – Having no collateral requirement gives a personal loan an advantage over a secured loan. Even if you do not own any assets, you can at least get funds from Loan Singh.
Multiple purposes – A personal loan can be availed for a number of purposes such as purchase of household appliances, electronic gadgets, purchase of gold, holiday travel, home improvement, job relocation, medical expenses, home renovation, purchase of second-hand vehicles, marriage, etc.
Loan amount and tenure – The loan amount for a personal loan at Loan Singh can range from Rs.50,000- Rs.5,00,000. The repayment is done via EMIs, with interest rates on a reducing balance method. The personal loan tenure can be from 3 to 36 months.
Loan Singh Application Process
The process to get an easy and quick loan with Loan Singh is mentioned below:
Get Started Page – Select ‘PERSONAL LOAN’ from the dropdown and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID, and corporate email ID
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 directly link your 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.
Loan Rejection Reasons
Now that we have seen the importance of personal loan, let us look at some common personal loan rejection reasons.
It gets difficult for Loan Singh 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 and they might have been eligible because of a good credit score. Ensure that you complete the application form on Loan Singh’s Get Started page.
Borrowers with low income levels will be rejected outright. You should be earning a minimum of Rs.15,000 per month. This is because we know what an average millennial needs to spend on a monthly basis. If you are barely saving enough for yourself, how can you pay the loan EMIs on time?
Poor Credit History
You may be a high salaried individual and capable of paying the loan EMIs, 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 at least the last 3 months, this will never happen at Loan Singh.
Bad 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 the new iPhone X 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. It would be even better if the statement is forwarded to Loan Singh directly from your linked net-banking account.
Borrowers also try to sneak in fictitious or tampered financial information to conceal their past defaults, this should not be done and the application would be out-rightly rejected.
Required loan amount
You cannot apply for a personal loan at Loan Singh with a far-fetched loan amount. Your loan amount will depend upon your income and repayment capacity. Before you apply for a personal loan, you should assess your requirement carefully. If your need for funds is small, then try to arrange from non-banking sources.
Multiple concurrent loans
Make sure you are not currently paying multiple EMIs towards multiple loans. This can be a reason for a personal loan rejection towards your application. If these multiple loans indicate you being in debt, then it is easy for the bank to reject your application. Ensure you have enough balance in your account to spend towards daily expenses, utility payments, etc. Pay-off the loans you already have before applying for a new one. The total amount of EMIs being paid each month should be less than 50% of your monthly income.
Some other reasons for personal loan rejection…
- Indication of bounced cheques in your statement
- Non-crediting of monthly salary on time
- You are a loan guarantor to someone who has defaulted in a loan EMI payment
- The co-applicant to your personal loan has a poor credit bureau record, even if your credit score is good
- Your residential address is on the defaulter’s list or if you live under the same address as someone who has defaulted on a loan EMI payment (could be a family member or previous tenant)
- You faced many loan rejections prior to your current loan application