Re-Applying for a Personal Loan Post-Rejection: The Prerequisites - Loan Trivia

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Thursday, 12 July 2018

Re-Applying for a Personal Loan Post-Rejection: The Prerequisites

“Never give up on hope, situations can change overnight.” The quotes stand true and valid even when considering the retail banking sector i.e the sector that deals in business to customer loans. Be it anyone, all of them were rejected for a loan once. That is how they learned from their mistakes and came prepared the next time while applying for a Personal Loan.


A Personal Loan is based on the applicant’s CIBIL score and their gross monthly income. Secondly, it is important that people keep their loan eligibility in mind while applying, and do not exceed their borrowing eligibility. Otherwise, their loan application will face rejection no matter how well they plan it. Hence, if you have ever been rejected for a Personal Loan, this is for you: how to get a Personal Loan after being rejected for it once.

The process involves two steps:

1) Determining the Cause of Rejection: In many cases, the cause of rejection is the applicant’s poor CIBIL score. As mentioned above, it is THE most important factor for approval. Yet, there can be several other reasons as well, hence you need to find the real reason for rejection.
 
2) Eliminating the Cause of Rejection: Once you find the cause of rejection, the next task is to eliminate the issue and improve your future chances of loan approval.

Additional Reading: Got Rejected for a Personal Loan? Here’s How you Can Get Loan

Things you do to eliminate the issue:
  • Pay off any existing debt to increase your credit score
  • Increase income and maintain a stable job
  • Check your credit report for errors
  • Choose a lender with easy eligibility criteria
  • Apply for a Personal Loan with a co-signer
In the meantime, while you are trying to eliminate the cause of rejection, don’t apply for a fresh loan. The same will further degrade your loan eligibility if the application gets rejected again. So, avoid the risk. 

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