A personal loan is a go-to financing option that helps you to meet various goals and big-ticket expenses. A Personal Loan is a great boon when you need money without too much of a hassle or borrowing from friends or family. It is important to get the best financing solution to meet all kinds of expenses and emergencies at once. An instant personal loan is an unsecured form of loan that does not demand any security or collateral. Therefore, there is a risk involved in a personal loan that you need to be aware of. There are chances that you may be disqualified for a personal loan. There are various reasons because of which your loan application may not be accepted. A personal loan application gets rejected due to various reasons that do not prove creditworthiness. Therefore, it is very essential to consider all the factors that can directly disqualify a personal loan application. Below listed are some of the factors that disqualify you from getting a personal loan in Mumbai or in any other city.

● A low credit score can be one of the most important and popular reasons why probably your personal loan application can get rejected. Individuals are commonly disqualified due to a low credit score. The moment you submit your personal loan application along with your documents, the loan provider checks your credit score to understand your creditworthiness and if you are eligible to handle the loan. Credit score, therefore, holds a lot of importance for borrowing, and an individual needs to meet the requirement as fixed by a loan provider. If your loan application has been rejected, you may have been disqualified due to a low credit score. The best credit score to get a personal loan is more than 750. Therefore, you must start working on your credit profile and get on all the activities that can improve your credit score to make borrowing easy and hassle-free.

● Low income can disqualify you on the grounds of low credit eligibility and unstable financial background. If you want your personal loan application to get accepted, you should try to increase your income source to make it eligible for getting a personal loan. Low-income grounds can disqualify you because the loan provider does not find it safe enough to offer you a loan where you need to manage both monthly installments as well as fixed obligations. Therefore, you must increase the source of income if you need a personal loan from banks or non-banking financial institutions. Without high income, it will be difficult or a burden on you to meet monthly installments along with daily expenses.

● An incomplete loan application is one of the most popular reasons why you can be disqualified on a personal loan application. If you find that despite having a good credit score and high income, your loan application has been rejected, this can be one of the important reasons where you need to check. The personal loan application is one of the most important things that is checked by every loan provider to gain understanding and information about the borrower in a detailed manner. Therefore, if you submit an incomplete loan application with irrelevant and incomplete information, it becomes very difficult for the loan provider to validate the information and process the personal loan. Therefore, you need to complete the application without keeping any blank spaces where it is required to fill up with the application.

● Documentation is important to get a personal loan approved. Without documentation, it will not be possible for the loan provider to run a background check based on personal information and financial aspects. Therefore, if you find that you do not have a specific document you need to speak to a loan provider before applying for a loan. Possibilities are there that due to lack of documents you are disqualified from applying for a personal loan.

● If you have a low credit utilization ratio, chances are that you will be disqualified from getting a personal loan. An individual with existing multiple loans will not be eligible to take a new personal loan as the burden will increase and there will be chances that an individual ends up being in a default position. Therefore, you must maintain your low credit utilization by not exhausting the entire credit available.

● The debt to income ratio is an important aspect that makes sure that you are not paying more than 50% of your income towards monthly installments of the loan. If 50% of the monthly income is already exhausted in pain monthly installment, you are not ready to take the new loan. Therefore, you will be disqualified on the grounds of getting a new personal loan. Therefore, it is recommended that you close all existing loans before applying for a new one.

Wrapping up

An instant personal loan is a multi-purpose loan that can be used for various small and big-ticket expenses. It is recommended that you visit Clix Capital for a smooth personal loan apply process. Use a personal loan EMI calculator so that you get to calculate your monthly installments and compare all the available options available for a personal loan in Mumbai.

Clix Capital Services Private Limited
Corporate Address: 901b, 9th Floor, Two Horizon Centre, DLF Phase V, Gurgaon, Haryana, India – 122002
Website: https://www.clix.capital/
P: 1800 200 9898
E: [email protected]