Common reasons of rejection for personal loan

UAE is the most developed and diverse market that anyone can access. Every industry had implemented certain criteria to safeguard their industrial interest along with everyone’s’ interest. Each industry has unique standards and principles. Even the banking industry. Therefore, it is critical to understand what are the criteria they had established to grant and approve a loan request. Otherwise, the consequences of not complying with the standards will result in the rejection of loan application. Yes, it does hurt. But at the time of need, it is the most problematic thing any borrower is likely to experience.

After a thorough analysis, we have outlined some common reasons why an application for personal loans in Dubai got rejected. Ignoring personal credit report is the most crucial aspect that any lender tends to check before reviewing the application. As it provides a brief overview of the borrower’s past credit payments. Above all, it tells the lender about the responsibility and creditworthiness of the applicants. Therefore, loan applicants need to review, modify, and to consult credit agencies to improve an applicant's credit history before submitting a personal loan application. Otherwise, your application will be rejected on the bases of your poor credit report.

• Submitting Loan Application to Multiple Lender at A Time: frequently borrowers neglect the fact that lenders’ after receiving any loan application consult credit agencies to get borrowers' credit reports. As the agency keeps a strict tab on, borrow credit history including, the places borrower had requested for loans, along with the interval of application submission and loan clearance. All this history is sent to lenders to further evaluate an applicant credibly. Thus, having multiple loan application in a single short interval effect the borrowers credit score. Therefore, it is recommended to carefully evaluate the lender market place. While researching for lenders, borrowers should look for low interest personal loans to reduce the chances of application rejection.
• Miscalculating Personal Payback Ability: many lenders customarily consider applicant monthly income to assess the borrower’s ability to pay back loans. For the lender, it is extremely important how the borrower will repay the loan. For this they had certain income criteria, often lenders kept it as a secret and do not disclose on their website. In this manner, it is recommended to every borrower to consult the lenders and thoroughly discuss loan approval criteria before applying. Otherwise, it will lead to application rejection.
• Not Searching for Loan Alternative: it is the most significant reason for loan application rejection. Often borrowers submit applications with conducting loan market research for application requirements, eligible criteria for borrowers, and other interest rate procedures. Thus, failing to comply with single criteria results in application rejection.

The Parting Words:

Submitting a loan application is an extremely sensitive issue. Therefore, it requires thoughtful planning and consideration. To reduce the chances of application rejection, the applicant should pre-evaluate the loan application or consult an expert to review the application. It will help to modify error, consequently improve the chances of application acceptance.

About This Author

Zoe Daniel Joined: March 11th, 2020