5 Unexpected Reasons Why Your Personal Loan Can Get Rejection
Personal Loans are one of the services offered by banks, and it is an excellent way to meet the bulky expenses in life. To avail it, you’ll have to apply for a Personal Loan and wait for your bank to approve the same. They have application forms you can fill out in order to get the loan sanctioned and more often than not, they do give the green light.But there are times when Personal Loans can get rejected as well. This could be due to a wide array of reasons – from counterfeit signatures to bad scores. It is important that you follow all the steps necessary while applying for the loan so that it doesn’t get rejected or stalled halfway through. Make a note of some of the most important reasons why Personal Loans get rejected, and you’ll be able to get yourself a loan of your own in no time.
Here are five of the most common reasons why Personal Loans get rejected:
- Signature Mismatch:
One of the most common reasons that Personal Loans get rejected is due to mismatch of signature. It is important that you get your sign right because it is the gateway for you to get a lot of applications sanctioned. It is the main identity proof for banks to validate your presence during the time of sanctioning and any mismatch can prove to be a tedious and banal process.
Availing an HDFC Personal Loan or any other loan is not the easiest process, especially if you’re taking it to purchase a home or a car. The signature needs to remain consistent everywhere while you apply for the same. At the time you apply for Personal Loan, make sure that you cross-check all the signatures across the board. If they’re in line with each other, then you’re good to go. Also, the process of applying for a home loan is lengthy, so it’s important that you’re vigil and careful throughout.
Keep checking now and then if there’s any sign that might mismatch. Ask them for a fresh sheet if that is the situation and get the loan sanctioned smoothly.
- Submitting Incomplete Forms:
Incomplete forms are another major concern for banks that have to go through different rounds of processing. The entire procedure is a long one, so banks are naturally looking to get it over as soon as possible. Whenever there is an incomplete form that is submitted, it becomes harder for them to validate any details regarding the individual applying.
When you’re applying for the Personal Loan, ensure that the details you fill out are correct and to the point. If certain documents are being asked, make sure that you’ve submitted the same in the right order to avoid any further confusion. There is no hurry to get the loan sanctioned as it is one of the most important moves in your life. The longer you take to get the loan approved, the harder it is going to be for you.
It also helps to keep a checklist to ensure that your documents are kept in check. By doing so, you’ll always be able to cross-check and see if there are any disparities both ways when you’re applying for the loan yourself. Some banks allow you to apply for the loan online as well, so keep these pointers in mind even then.
- Not Having a NOC:
In a life of loans, a NOC (No Objection Certificate) is your shot at freedom.Banks require NOC from previous lenders to validate if you have any older, unpaid loans. Previous lenders have to provide you with this all-important document that absolves you of any previous loans you might have applied for.
As long as you’ve closed a previous loan, it shouldn’t be an issue for you to get a NOC from the lender. The current owner will be aware of any previous unpaid loans because it will reflect in your CIBIL report. The CIBIL report plays a big role in your ability to receive a loan, so ensure that you have a good score always.
When it comes to Personal Loans, lenders become a bit rigid because the rules and regulations restrict them as well. As long as your CIBIL score is good, it becomes easier to apply for the loan online.
- Presence in the Defaulter List:
When you purchase a home that is in a location or area which is under a negative zone or in the bank defaulter list, then the chance of the home application getting rejected is higher. Most lenders keep a record of all your records such as the location, address and other common details, so unless you’ve defaulted, there’s no need to get flustered.
If the current location where you’re applying from comes under the negative zone or defaulter list, then the home application has a higher chance of getting rejected.
- Non-availability of Phone/ Landline:
While this may be an unconventional reason to fathom, it has happened before and is a common occurrence. If you’ve filled the application form correctly and given all the necessary documents, the verification team will call you on your landline or phone to confirm if the numbers entered are correct or not. If you’re unavailable, then the officer responsible will mark you “non-available” and reject the loan.
The lenders investigate all the details provided in the application form. If there isn’t any reception available, then the form gets rejected automatically.
Thus, Applying for Personal Loan requires you to be extra careful to ensure all details are correct and filled in the right way. Make sure you avoid these common mistakes the next time you’re applying,and in no time, you’ll have your loan sanctioned.
Whether it’s an HDFC Personal Loan or any other bank, the procedure remains the same, so stay alert, and you’re good to go!