What Mistakes Can Ruin Your Chances of Getting a Personal Loan

Posted by Atish Nayar on February 19th, 2018

Getting a personal loan does not take much time these days. All the potential lenders offer their services online. So, all it takes is a few clicks to reach a lender and get your loan sanctioned. However, the process will be smooth only when you are ready with all the necessary paperwork and avoid common mistakes when applying for a loan.

Personal Loans depend on your financial profile, employment history, and other factors. So, if you want the loan to be sanctioned, you need to do your homework.

Interested to know the mistakes that you need to avoid while applying for a personal loan? Then read on and be informed:

1. Not maintaining a strong financial profile

If your financial profile includes unpaid loans, late payments in the past and other issues, they show a red flag. Lenders closely look at the financial profile of the loan seeker before sanctioning the loan. So, if you apply without maintaining the financial profile, it leads to the cancelation.

2. Not having a repayment plan

Your repayment plan also decides whether you get the loan or not. A lender approves a loan only when the seeker presents income evidence and other assets to ensure the repayment. So, to become eligible for the loan, it is extremely important that you present a repayment plan in front of the lender. You need to show the consistency of your income, which will ensure the lender about the loan repayment.

3. Not having a convincing purpose

There are many lenders who include the purpose of the loan in their criteria of sanctioning. Such loans require you to present a legit and convincing reason why you are asking for the loan. If the reason is not convincing enough, it can lead your application to rejection.

4. Filling wrong details

The loan application presents your request in front of the lender. Any mistake in the details can make a lender suspicious about your profile. This usually results in delays in the loan sanctioning process. However, there are a few cases when you get the rejection. Hence, it is extremely important that you stay careful and consistent while filling the application. Make sure all pieces of information align with each other.

5. Unstable career history

Many times, lenders reject a loan application because of the unstable career profile of the loan seeker. Not having stability in your work doesn’t allow the lenders to put his faith in you. As a result, your loan request gets cancelled. So, make sure that you obtain the stability before applying for such a loan.

6. Insufficient value of the assets

Getting a personal loan requires you to present some assets as security. These assets work as collateral when you can’t pay your loan. However, the overall value of the asset matters. If the assets don’t balance the loan amount you are asking for, then the lender might reject your loan application. So, you need to secure some valuable assets before looking for Personal Loans.

Keep all these mistakes in mind and prepare in advance to get a loan conveniently.

Like it? Share it!


Atish Nayar

About the Author

Atish Nayar
Joined: August 2nd, 2017
Articles Posted: 8

More by this author