Loan application refused? Do These 5 Things To Get It Fast

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Loans have become very popular these days as people can get them easily and without much hassle. Banks have made loan processing easy and fast. But sometimes your loan application is rejected or you don’t get the amount you want. What to do in such a situation?

Kshitiz Mahajan, co-founder of Complete Circle Consultant, told Zee Business TV, “Loan applications are often rejected due to an individual’s poor CIBIL score. A person should know their CIBIL score and do their best to improve it in order to get Although there are a number of factors responsible for loan denials, they all have solutions.”

Here are some steps you can take to avoid such loan rejections:

1. Check/Improve your CIBIL score: CIBIL is an agency that assigns each individual a grade or score based on their financial history. It analyzes repayment timing, credit used, income, and various other things to give a score. Banks grant loans based on these CIBIL ratings. “One should check his CIBIL rating and try to improve it by repaying outstanding loans, eliminating debt in order to get loans easily,” Mahajan said.

2. Get a loan based on your income: People often ask for more than they deserve or require. Banks generally reject loan applications that demand more than an individual’s appetite or ability to repay. ‘”If the bank or lender finds that your income does not parallel the amount of the loan, your application may be rejected. Make sure you ask for a decent amount. For example, in the case of a home loan, you can get up to 6 or 8 times your annual income,” Mahajan said.

3. Take advantage of loans against assets: Even if your loan is refused, you can always try the reverse. If you have assets like gold, stocks, mutual funds, bonds, real estate, etc., you can qualify for a loan against them. Banks find it easier to repay secured loans and your application is less likely to be rejected.

4. Get loans from NBFCs: In the event that the loan application is rejected by your bank, you can approach an NBFC to obtain one. However, NBFCs charge higher interest rates than banks.

5. Repay your pending loans: ”If you still have some old dues pending in your bag, you should get rid of them as soon as possible. Banks do not provide loans to borrowers who are already paying heavy EMIs on pending loans.

“Furthermore, one should never avail a loan for a need that can be avoided. A loan is a serious financial life decision that can make or break your financial health,” Mahajan said.

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