Why is Your Tata Capital Personal Loan Getting Rejected

Why is Your Tata Capital Personal
Loan Getting Rejected?
Getting a personal loan application rejected may land anyone in mid-water from
where getting back to the shore becomes a tough job. When a personal loan
application gets rejected, the applicant comes to such an awful condition that even
going to next lender might not help him. Every financial activity of a person is
recorded by CIBIL, so your loan rejection. When the next lender finds that one of
your loan applications is already rejected, he may also hesitate to lend you or if he
lends you, it will be at a higher cost. Being concerned about the reasons of a loan
application rejection can save you from facing that tough time. In our today’s article
we will discuss the possible reasons for which your loan application can be rejected
by the top lenders of the country.

Tata Capital is one of the best NBFCs which provide personal loans. But there are
times when a loan seeker applies for a Tata Capital Personal Loan and he has to
face disappointment. A rejection of personal loan application may happen for
various reasons.
Here are the primary reasons which can make a Tata Capital personal loan
application go rejected.
Poor CIBIL Score- Credit Information Bureau (India) Limited, commonly known
as CIBIL, keeps records of all credit-related activity of individuals and companies
including loans and credit cards and the repayment schedule. All the banks submit
the needful data to the CIBIL and on the basis of the data CIBIL issues a Credit
Information Report or CIR (commonly referred to as a credit report) and a credit
score. A credit score ranges from 0-900. A score of 750 and above is considered as a
good credit score. If the loan applicant's credit score is not up to the mark, there are
chances that the application may get rejected.
Poor Track Record Of Repayment- Just like the credit score, the Credit Information
Report or CIR is also checked by the lender. In this report, all kinds of credit
information along with any kind of delayed or missed EMIs in the past will be
reflected. Lenders check CIR to get an idea on the financial habit of the loan seeker.
If the lender is unsatisfied with the report, he may reject the loan application.
Frequent Job Changes If Salaried- In the present corporate world, changing a job is
the quickest way to hike income of salaried persons. But this trend of changing
employer can make your Tata Capital personal loan application get rejected.
Frequent job changes may prove a person unstable. A loan is a commitment for
years. So if a person is unstable, he may not even be regular with repayments. So in
such scenarios, some lenders may reject the loan application.
Poor Financial Health of Business If A Businessperson- If the loan applicant is a
business person then his yearly turnover is assessed by the lender to check his
repayment capacity. Any lender checks the repayment capacity of the borrower to
minimize the chances of turning the loan to an NPA. So if the financial health of the
business is not well, a loan application can be rejected.

Too Many Loans Taken By the Borrower- An application of personal loan can be
rejected on the basis of FOIR (Fixed-Obligation-to-Income ratio). This is a
parameter to check the ratio of the take-home salary of a person to the total financial
obligations. If a person’s net payable every month is more than 50% of the takehome
salary, then his loan application is likely to be rejected.
Rejections by Other Lenders- When a loan application gets rejected, the action is
recorded by the lender and hence gets even to the Credit Report. A credit report of
a loan applicant with a record of rejected loan application makes the present lender
suspicious over the applicant. In some unfortunate cases, this can emerge as a reason
to reject the loan application.
Address in Blacklist- Sometimes some addresses are kept in blacklist by the CIBIL.
If any person sharing same address with has a track record of missing EMIs and has
hence been reported to CIBIL, your address automatically gets stored in their
defaulters’ database. So when you apply for a loan from the same address they will
link the bad record to you and this raises the chances of facing disappointment by
the lender.
Wrong/Invalid Details- One may apply for Online Personal Loan or go with the
conventional method of borrowing, in both the cases, one has to fill up the
application form, where he/she needs to provide some information. If the details
provided by the borrower is found invalid or wrong by the lender, the loan
application will certainly be rejected.
Age- Age is another criterion of Tata Capital personal loan eligibility. The age of the
loan applicant must be in the range of 21-58 years for the salaried person and 25-65
years for self-employed persons and business persons.
The above discussed are the primary reasons for which a personal loan application
can be rejected. Have a deep consideration over these points before applying for a
personal loan so that do don't need to face rejection.