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Top Reasons for Personal Loan Rejections

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Tradofina Personal Loan

Being declined a small personal loan may be frustrating, although, it’s fundamental to keep in mind the reasons why you didn’t qualify. After you grasp the reasons why your personal loan application was declined, you still have the choice of taking measures so that it does not happen the next time. Nevertheless, this article is going to discuss the most frequent reasons the lender may deny your application and legit tricks on how to get their approval. 

Common reasons that could explain your personal loan rejected 

Applicants who apply for small personal loans might not get the sure shot approval. There can be plenty of reasons for the fact that your application may be rejected or approved.  

Below we are indicating the common reasons why the personal loan might be rejected. 

1. You have been loaned too much money 

When you apply for a loan, your credit history and how many of your credit accounts are open will be checked by the bank. They may think that you owe too much money in total. Lenders will even look at whether you do not have any income left after you pay your rent, credit card bill, or any other payment.  

2. You’re income not upto the mark 

 If salary criteria do not meet your income limits, then your funds will not be approved by the bank. There is also a factor which is called the debt-to-income ratio and has to correspond to the lender’s terms and conditions. You can only get approved afterward. 

3. Incorrect information added in loan application 

For the most part, the wrong or incomplete loan application is mostly the grounds for any applicant’s automatic rejection. 

You need to provide a basic set of information. This info provides the lender with a good reason for approving or denying your loan application. Thus, if this is the case, the prospective lenders will be left with no other choice than to approve or reject about whether you deserve a loan or not. 

It is crucial that you re-read your application, pointing out any mistakes that you might have missed along the way. Also, see to it that you have the right documents and that everything you are sending is not out of line. Further, it is wise to contact the lender to check if they already have everything they require after you have given out all your supporting documents. 

Follow Proper Means to Get Small Personal Loan Approval 

There are several reasons for borrowers facing loan rejections from traditional lending options. On the contrary, Tradofina app offers an easy way out to apply and experience fast verification to provide loan approval. 

 
A small personal loan app like Tradofina follows user-friendly loan application process based on the following set of points.  

  • Apply online via app by filling basic personal information. 
  • You only have to submit a digital picture of your Aadhar card.  
  • You must be 21 to 51 years old. 
  • Apply for this loan and get approval within a few minutes. 
  • No such restriction in utilizing the loan amount. 

Conclusion 

Facing loan rejections is common. However, applying specifically for a small personal loan from Tradofina has less chance of facing rejection. The simple terms and conditions followed by Tradofina app assure quick approval and equally fast dispersal of cash into the borrower’s bank account.