“Your loan application is declined!” is not a comfortable phrase to hear when you’re in a state of emergency. The deepest concerns for banks, NBFCs and other firms are all the same. People who come across having good credit scores can also be subject to rejection for reasons unknown.
Buddy Loan is renowned for its approval rate. Over, 80% of approvals are personal loans that meet the eligibility criteria at Buddy Loan. In most cases, you will find that the interest rate is a matter of objection for heavy pay-outs and longer tenures. But, at Buddy Loan you can choose a lender and customise the tenure and EMI based on your income.
There are reasonable loan rejections at Buddy Loan. Typically, there is much very little margin for rejection. Yet the extreme cases are listed below:
Past loan settlement behaviour
Any financial firms considering your loan request will check on your past loan settlements. The term “loan settlement” is often mistaken with closing a loan. It is by definition the same, but with a minor difference. Debt settlement is a one-shot payment where you repay less than the availed loan amount.
Now, this might considerably reduce your credit score. Based on this behaviour, the study says that banks and NBFCs might reject your loan application straight out of request. Buddy Loan, however, informs the applicant in case of rejection.
History of defaulting on a loan
At Buddy Loan there is no collateral required to avail a personal loan. Buddy Loan acquires all the information on loan application and eligibility criteria to provide you with the list of lenders. There are cases where people default on a secured loan. Now, this is a major setback if you’re considering a loan again. The applicant might not stand a chance for another loan for a longer time.
Many loan enquiries and requests at a time.
This is a common mistake many of them do. If you’re constantly enquiring for a loan in a limited time, the lender might get a greedy impression of you. In terms of loan application, they doubt your submitted information and potential repayment.
Incapable of deciding the lending platform.
Doing a bit of research before applying for a loan can help you a ton. But many people fail to do this and thus remain clueless during the process. If you pick a lender that approves your request and over a short period, say you will need more money. You either top-up or you reach out to another lender. Now this is by default the most unacceptable.