Availing a personal loan is no easy task. A lot of research and time and effort is required to find a lender who can give you the deal you are looking for. One has to compare the offers and plans from different lenders to get the loan at lowest interest rates. For a loan approval, one needs a good credit score, have less financial liabilities, higher income and no default record. Apart from these a loan application can be rejected for very different reason. Let’s have a look at what else could sabotage your loan approval.
The Signature plays a very vital role while signing any document, it should remain the same everywhere. Though at times there are chances of signature varying, it is best to keep a notice of these when signing all the forms, in order to avoid a mismatch and have a smooth approval of the personal loan.
Any error in your credit report may hinder your chances of getting an approval for a personal loan. These errors can be from incorrect reporting of payments, closed accounts shown as operational, personal details as incorrect address, PAN details, etc. In order to avoid a disapproval of your personal loan application, it is advisable to check and review your credit report periodically. You can spot such errors and get them rectified timely before harm is done.
At time, personal loan applications can be rejected because of incorrect or inaccurate details provided by borrowers. Since a personal loan is unsecured loan, so every minute detail of the borrower is verified for authenticity and incorrect details can become a major cause of rejection. The loan application form should be filled carefully and accurate & updated details should be mentioned.
A No Objection Certificate (NOC) is very important for the loan application to pass through. If you had taken a loan previously, A NOC is a must and should not be forgotten for submission. Your personal loan application may be rejected if these certificates aren’t provided. When it comes to disbursing a new loan, lenders are very strict with rules and regulations. Remember to collect your NOC from the previous lender and submit it with other papers for approval of your loan.
Often banks have ear marked negative zones. These are areas which falls under the bank’s defaulter list. If you happen to be from any such zone, there are high chances that your personal loan application might be rejected. Even for a personal loan, lenders keep records of address, location and other details. If your current location is under their defaulter list or their negative zone, your personal loan applicant might be rejected.
To avoid these silly goof ups which might lead to your personal loan rejection, remember to check and re-check every details before submitting your applications.