personal loan: If someone does not have credit history, the lender will not give loan. Along with this, a good CIBIL score is also necessary.
It is necessary to have a good CIBIL score for the loan.
Many times it happens that you apply for a personal loan but it is rejected. Actually it is collateral free loan. Meaning the bank does not ask you for anything in return. This is the reason that the interest rate is also high in this and the loan amount is also low. There can be many reasons for loan proposal rejections. Let us know about these reasons.
Whenever you apply for a loan, the bank pays attention to two things. The first is whether the borrower wants to be repaid or not, the second is whether he can do the reparation or not. Normally the lender looks at the credit score of the borrower. If someone has a credit score of 650 or more, then he gets a loan easily. However, in the corona period, a loan is obtained if you have a credit score of 700 or above. On reducing the credit score, the bank will reject the proposal, but the NBFC can give you a loan.
Credit history is very important
Some people do not have a credit score ready. If someone does not have credit history, the lender will not give loan. Your CIBIL score is not generated if you are not salaried, loan EMI is not deducted, credit card is not available. In such a condition the lender may refuse to give low.
Every bank has a minimum threshold
Every bank keeps a minimum threshold for giving personal loans. For example, if the salary is less than 20-30 thousand, the bank does not give loan. If you want more loan, then salary should also be more. Apart from this, the bank does not give loans even if the fixed expenses are higher every month. In such a case, whose FOIR (Fixed Obligations to Income Ratio) is less, he gets loan easily.
Take less amount, do top-up later
If your credit score is not so good then the borrower should ask for a low amount loan. After that choose the option of loan topup from the same bank / financial institution. This will be possible only if you have paid the initial installments on time. This will lessen the concern of the borrower, you will have to pay less tax on small installments for less loan and your monthly budget will be limited.
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