A lot has changed in the sector of availing loans. Nowadays, applying for a quick loan via personal loan apps is quite a simple process since the approval process of these apps is faster than traditional bank loans. Despite being so user-friendly and quick, there are a couple of things that can go wrong. Even if the personal loan app approves the loan on the same day of application, there might be a reason they reject it. Your personal loan can get rejected and you might have to re-apply for the loan all over again.
Below are the four reasons why personal loan application gets rejected:
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Insufficient or incorrect documents
The documents required by a personal loan app are minimal. Having the proper documents is a crucial step in applying for a quick loan. Before sending the loan request, read the requirement list carefully and prepare the documents. Apps like CASHe ask for your identity proof, address proof, and income proof. Make sure you have at least one document in each category. Once you submit the documents, the app takes time to review and notifies you about the approval or disapproval. If your request gets disapproved, you can always reapply.
Applying with a low credit score
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Many banks or financial institutions will reject your quick loan request if you have a low credit score. The higher the credit scores, the better the chances that your loan will get approved. If you have a low credit score, before applying for a personal loan online try and improve your score. Paying your outstanding credit on time and not over-using your credit card will help.
No steady income
One of the requirements of the personal loan app is being a salaried individual. If you don’t have a fixed income, your loan request will be rejected by the personal loan app If you are not employed or between jobs avoid applying for a quick loan. If you have another source of income like rental income or investments in which you get monthly returns that might help you. Also, your employer should be a registered company. You need to submit the salary slip for 3 to 6 months, which means you need to be in a particular organization for that period.
Not eligible as per other criteria
Apart from the documents and the income details, one has to be eligible as per other criteria mentioned by the personal loan app. You should be in between the age group to avail the quick loan. One has to be a resident of India. You also have to check if the loan app provides personal loan online in your city. CASHe provides a personal loan in most of the Indian cities. Make sure you have a green signal as per the rules stated by the loan app.
Avoid these common mistakes and make sure your loan request is complete. Following these four points to improve your chances of approval.
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The author is the Executive Director & CEO of CASHe.
