Bank Rejected My Loan Request. Now What?

ByAmrina Alshaikh

You recently applied for a personal loan – and against your expectations, the bank rejected your application! All is not lost; read on to know what your next steps should be.

Why banks reject loan applications

  • You are not salaried. Banks prefer loan applicants to have a stable income from a job. When applying for the personal loan, you are expected to attach the latest salary slips and bank account statement showing the credited salary. If you’re out of a job or if you are self-employed with erratic income, the bank will reject your application.

 

  • Your credit score is low. The first thing that banks check on receiving the loan request, is the applicant’s CIBIL credit score. This score is computed based on your income, age, past repayment history and outstanding debt. It has a total of 900 points, and any score above 750 is considered acceptable for a loan. If your bank rejected your loan application, it probably means you have a low credit score.

 

  • Your documents are not as expected. The banks also check all your necessary records such as – age and income proof, address proof, latest bank statements showing the credited salary, Aadhaar and PAN card, and your latest passport sized photograph. If any information in these documents is found to be dated, or falsified or unverifiable, then the bank will flag down your application at once.

So what can you do now?

Relax, all is not yet lost. It is confusing to have your application rejected if you have a regular income from a job. It just means that your CIBIL credit score was unsatisfactory. Here’s where online personal loan apps enter the picture. If the bank rejected your application, you could still try with an online loan app  to apply for a personal loan.

This is why: online personal loan apps have a different parameter for checking your credit worthiness. They develop their own AI-backed algorithms and smart analytics that intelligently computes your credit score based  on more parameters than just your income and past credit history. Their method is a far more reliable and accurate representation of your candidature. So where traditional banks fail to offer instant personal loans, the chances of a loan app offering it are  pretty high.

How to apply for  an instant personal loan on an app

Here’s how you can make your personal loan application on a loan app:

  • Select the app from the Google Play Store and download it.
  • Once set up, the app is immediately ready to use. Start browsing the features, product details , the tenures and interest rates being offered on personal loans, and so on. In short, read all the loan-related information minutely before proceeding.
  • Check the documents list and procure the same for instant approvals
  • Submit the application and await approval from the app.
  • Once approved, the money is disbursed to your account.

Conclusion

An online loan app can succeed where banks can fail – so don’t lose heart and apply for a personal loan with a leading online loan app to save time and effort.