In today’s fast-paced life when things are available at the click of a mouse why make multiple visits to the bank and waste your precious time? Especially when you may face a rejection after all the cumbersome paper-work involved in taking a personal loan from bank. Instead, to borrow money online is still a better option. All you should do is fill an online form and experience the benefits of instant personal loans. That too from the comfort of your home! Fast turnaround time and hassle-free process make it any day better than bank personal loan for salaried people. What’s more, digital lenders have a smart way of assessing the personal loan eligibility of an applicant whereas bank uses archaic way to assess your risk profile.
What May Trigger a Rejection of Bank Personal Loan for Salaried Employees too?
The traditional wisdom suggests that salaried class are a preferred customer for banks for personal and they would usually meet personal loan eligibility criteria. But you are in for a shock because there are many reasons that may cause even a bank personal loan for salaried employee to get rejected. We list down the 7 most important reasons why your personal loan from bank may get rejected.
1. Low CIBIL Score is the #1 Reason for Rejection of Bank Personal Loan for Salaried People
To qualify the personal loan eligibility criteria with a bank, you must have a CIBIL score of 750 and above. This score may be low as you would have missed out on the last date of payment of dues or you would have paid only the minimum amount.
But at CrediFiable, a new-age tech-enabled consumer lending platform, we don’t judge a book by its cover! We go beyond your credit score. Our smart risk engine assesses your credit worthiness based on your education, income and liabilities apart from your past financial behavior.
2. Comment at the end of the CIBIL report May Hinder Your Personal Loan Eligibility
Your CIBIL score might be good still there is room for rejection on your personal loan from bank. If your CIBIL report mentions about the settlement of loan then banks may get wary and not approve your loan. A past record of settlement of loans can cause rejection of a bank personal loan for salaried employees too.
3. Lack Credit History? Switch to Instant Personal Loans from Digital Platforms
Lack of credit history or insufficient credit history works against you while applying for a personal loan from a bank.
If you never needed to borrow money obviously there is no credit history available. And you need a loan to create a credit history. This becomes a chicken and egg situation!
At CrediFiable, we totally understand this situation. We know absence of credit record does not make you lesser worthy. You can borrow money online by logging into our website and providing your documents online. Our system will assess risk on your profile and you can avail instant personal loans. Why worry?
4. Unstable Employment History? You Can Still Borrow Money Online
Banks like stable employment history. Most of the banks require you to have minimum experience of about six months to two years as a personal loan eligibility criteria to sanction a loan.
But times are changing. Young millennials today want to enjoy from the very beginning of their career. At CrediFiable, we understand you. Hence, you are eligible to borrow money online even with a total of 3 months of work experience.
5. It is Harder to Get Personal Loan from Bank if You are an Employee of a New Age Company
Bank Personal Loan for salaried employees of new age companies is a utopian dream. Banks’ old ways of risk assessment vie employees of a start-up too risky for lending as not all start-ups succeed.
At CrediFiable, our risk engine assesses your creditworthiness holistically to give instant personal loans irrespective of the fact whether you work for a start-up in existence for just about a year or a fortune 500 company.
6. You having Multiple Loans is a Deterrent to Get Personal Loan from Bank
Despite good credit history banks may deny your loan application if you are already servicing multiple loans. With numerous EMIs running, chances of default increase. You are left with little cash in hand from your monthly salary. It is naturally harder that a bank personal loan for salaried may be sanctioned to you.
7. Earlier Rejections Lower Chances of Approval of Bank Personal loan for Salaried Professionals Too
If your personal loan has been rejected earlier, chances are that your loan application may be rejected one more time. Banks are very conservative about prior rejection.
But when you borrow money online from CrediFiable, we look at the state of your current holistic profile along with your CIBIL score. No bias!!
8. Insufficient tax-paying history Also Lowers Your Personal Loan Eligibility
Income tax filing helps a bank in assessing credit profile of an applicant. If you ever took it lightly and goofed-up banks are unforgiving!
Miscellaneous Factors that Work Against Your Bank Personal Loan Application
Apart from the ones listed above, there are many other miscellaneous factors which may come in the way of approval of your loan. You stood guarantor to someone who defaulted on a loan. Your residential address matches someone who defaulted on loan earlier. Irregular salary credit, insufficient account balance or bounced cheque are few of miscellaneous reasons why you may face a rejection on the bank personal loan for salaried. Rejection can also be on grounds of age, poor-bank verification or even if proof-documents are not as per bank’s requirements.
Many of these reasons can be over-ridden when you take instant personal loans from new age digital lending players. So reduce your chances of facing a rejection and just borrow money online from us!