Have a deep consideration over these points before applying for a personal loan so that do don't need to face rejection. Blog: https://www.bloglovin.com/@amritaagarwal/why-is-your-tata-capital-personal-loan-getting Apply for Loan: https://financebuddha.com/insta-loan/quick-apply Facebook :https://www.facebook.com/financebuddha Twitter:https://twitter.com/financebuddha
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.