When you are applying for the loans at the bank, don’t forget to keep in mind that somehow it might get rejected and that would be a shame. If you take the proper precautions this infortune can be prevented but for that keep in mind that there are some laws for banking and the loans rejection and acceptance depend on them if you are fulfilling the laws then there is no way that your application would get rejected in any way. So take a look that at what aspect you are doing something wrong:
Income and loans ratio:
Sometimes it has been observed that the people who apply for the loans they already had taken so many loans for various reasons that result in the imbalance of their income and loans ratio. If your income is not enough so that you could afford another loan then say goodbye to the new loan you are applying for. Before you apply for loan sit down and calculate if your income is enough so that you could get another loan.
Past banking credit report:
The most important thing that the loan applicant forget is that lender always does a background check if your credit report is having 60 days of unpaid debt that means that debt collection process is about to start, then know that your loan is about to be rejected. The reason is that unpaid credit report shows ultimately your incompetence for paying back loans.
Take a seat and think deeply if your loans are being rejected, may be it is because residential and office address you provided is in the defaulters list. This would result in the automatic rejection of the loan. It is not necessary that you are the one whose credit card dues are unpaid or who skipped the loan payment, it is very much possible that you are living with someone who did this and this is what jeopardized your loan application approval.
Job jumps may also cause loans rejection:
Do you get bored of your job very frequently and then change the jobs? This might have given your outlook as an unsteady person. This impression of you can literally put you in a place where your loans get rejected. When you apply for loans make sure that your past job’s tenure is at least 2-3 years. This would resultantly show the stability and also give the proof that you are consistent.
Income tax dues:
The most important thing that you need to understand is that if you are behind in paying the income tax than you would be on the hit list of the lender to not give you any loan at all. Whether your employer issued you “Form 16” or not make sure to file tax returns and get your loans approved.
Now that you have top 5 reasons that may cause your loans to get rejected make sure that you avoid these shortfalls and get the loans approved even from the strictest of the banking rules right away.