Loan Singh Explains – Online Personal Loan Rejection



Being an online personal loan facilitator, we reject a few applications each day. Loan Singh is very rigid in its loan application process because we want to ensure that deserving but under-served individuals are able to avail an online personal loan.

There are many reasons for your application to get rejected. Incorrect bank statement upload, not falling inside the required criteria, concurrent loans or a poor CIBIL score are just some of the reasons for a personal loan rejection. Therefore, it is important that you read Loan Singh’s FAQ page and also follow Loan Singh’s Blog for information regarding your personal loan application process. An online personal loan rejection can hurt, but you need to grow over it and mend your ways to avoid further rejections. The idea is to understand the criteria, always maintain a good repayment history and be salaried to avail an online personal loan.


Online Personal Loan

A personal loan is a type of unsecured credit that is generally availed to meet urgent financial needs. Being an unsecured loan, there is no collateral or mortgage involved. Loan Singh provides online personal loans for salaried individuals. But, being an online personal loan facilitator, how does Loan Singh trust the borrower? Loan Singh has not met the person face-to-face… So, the question arises as to how can a borrower be trusted in making the EMIs on time, without any defaults? Loan Singh looks at your creditworthiness. If you have a good credit history, you have a better chance of avoiding an online personal loan rejection. Your credit history tells Loan Singh how prompt you have been with your past loan or credit card responsibilities. Availing a personal loan, via Loan Singh, is advantageous because there is minimal paperwork involved, it is a complete online process, and funds disbursement is quick.


Online Personal Loan Eligibility

Just like in banks, there is a set of eligibility criteria applicable at Loan Singh, as well.

Being salaried – You must be at least 21 years of age and earning a minimum of Rs.15,000 per month

Good Credit Score – Have a good credit score to help Loan Singh gauge your repayment capabilities. If you have no credit history, then you must be salaried for at least 3 months.

Proof of Documents – We need soft copies of your Aadhaar Card, PAN Card and Address proof

The purposes for availing a personal loan are aplenty. Some of these are

  • Medical expenses
  • Second-hand vehicle
  • House repairs (which offer tax benefits, as well)
  • Online shopping
  • Wedding/Marriage expense
  • International holiday travel
  • Home improvement


Online Personal Loan Application

If you find yourself fitting Loan Singh’s criteria, log on to and apply for an online personal loan. You will need to keep your Aadhaar, PAN and bank details handy. Here is how the process goes.

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

Social authorization – Connect to your Facebook, Google+ and LinkedIn profiles, to avail a lower interest rate.

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.

Address page – Choose your type of residence, and 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 (in PDF format) either from your computer, GMail account or net-banking account directly. Our net-banking partner is ISO 27001 (2013 standard) certified & provides services to multiple banks, as well.

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 payments.


Online Personal Loan Rejection

We saw what a personal loan is and how Loan Singh provides an online personal loan. For all your financial needs, now you know where to get a quick and easy personal loan from. Let’s see what can be the reasons for an online personal loan rejection.

Low Salary

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. You will 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?

Incomplete Applications

It gets difficult for Loan Singh to assess which borrowers, who left their application incomplete, were actually interested. Sometimes, we receive applications where the applicant does not provide us with his/her PAN’s soft copy, but is actually eligible thanks to a good credit score.

Poor Credit Score

You may be a high salaried individual, 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 have been salaried for the last 3 months, this will never happen at Loan Singh.

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 who is expecting to get a personal loan, via Loan Singh, needs to be of at least 21 years of age.

Tampered Documents

Being honest with your financials is paramount importance. 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 net-banking account.

Borrowers also try to sneak in 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 capability. Before you apply for a personal loan, you should assess your requirement carefully.

Multiple Concurrent Loans

Make sure you are not currently paying EMIs towards multiple loans. This can be a reason for a rejection towards your application, as well. If these multiple loans indicate that you are deep in debt, then it becomes easy 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.

Other Common Reasons

  • Indication of bounced cheques in your statement
  • Non-crediting of monthly salary on time
  • You are a loan guarantor to someone who has defaulted on a loan
  • 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 (could be a family member or previous tenant)
  • You faced many loan rejections prior to your current loan application

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