What to Do if a Lender Rejects Your Loan Application

Personal loans are the perfect solution in times of crisis or limited means. With no necessary collateral and minimal paperwork, these loans offer convenience that other types do not. NBFCs and Banks push for instant short-term loans in India approval to make obtaining such funds faster than ever before, allowing individuals to get back on their feet as soon as possible!

Did you know there are often undisclosed eligibility requirements and terms & conditions when applying for a personal loan in Delhi? This can lead to a lengthy application processing wait time or even rejections. To save yourself the hassle of multiple loan rejections, it is essential to focus on some tips that we have discussed in this article:

Tip 1. Know Why Your Loan Application Was Rejected

If your short-term loans in India application are denied, the first step towards success in the future is to understand why you were rejected. Loan rejections have many causes. However, once you identify what caused your rejection, you can take corrective measures and improve your profile so that it does not happen again. Below are some of the possible causes of a personal loan rejection:

  1. Bad credit history.
  2. Lack of sufficient income.
  3. Lack of the required documents.
  4. Failure to meet the loan age limit.
  5. Information that is not accurate.
  6. Debt to income ratio that is high.

Apart from your personal decisions and eligibility, other factors are out of your control, like the unavailability of a branch near you or if your employer is not listed with the lender. Additionally, lenders often have their policies for minimum salary requirements, which can also lead to rejection. If you find that another lender’s eligibility criteria better align with your loan requirements, it is highly recommended to investigate this option.

Tip 2. Improve Your Credit Score

Having a credit score above 700 is beneficial. Having an even higher credit score (750+) will give you an added advantage in the approval process for a personal loan in Delhi. This criteria holds special significance when it comes to obtaining unsecured loan options as lenders rely heavily on your income and past repayment habits before approving such funds.

A poor credit score is often seen as a sign of high risk, meaning you are more likely to default on loan payments in the future. Therefore, if your application for short term loans in India has been denied due to a poor credit rating, you must begin working on improving it immediately. To build up your score again, pay all EMIs promptly and never miss any repayment deadlines for loans or credit cards.

Tip 3. Provide Correct Personal Information and All the Required Documents

Your personal loan in Delhi application may only be allowed if your personal information and documents are present and align with lender requirements. Additionally, even if all necessary paperwork is in order, but the information you have provided does not match what appears on your documents, rejection still looms! If you have been denied due to incomplete paperwork or documentation, you can try submitting them again.

Tip 4. What To Do if Your Personal Loan Was Rejected Due to Age Limit

Age restrictions are a standard requirement for all lenders when it comes to a personal loan in Delhi applications. If you don’t meet the minimum age criteria, waiting until you’re eligible before applying again would be wise. However, personal loans tend to have a maximum age limit since they have more risk of defaulting for senior citizens. If this is your case and you’ve exceeded the maximum age cap, consider shopping around other lenders or choose secured loans that may offer higher max ages as an option.

Tip 5. What You Should Do if Your Personal Loan is Rejected Due to Insufficient Income

Depending on the short-term loans in India lenders, different income criteria can be imposed. If you are unable to satisfy one lender’s requirements but meet another with a lower threshold, it could be time to switch institutions. If no lenders accept your present income level, then biding your time and waiting for a salary increase may be the best course of action.

Tip 6. What to Do if Your Personal Loan is Rejected Due to High Debt -to Income Ratio

When weighing your loan application, it is essential to take into consideration your debt-to-income ratio. This measurement reveals the amount of your monthly EMIs versus your monthly income. If your application is rejected due to a high debt-to-income ratio, then a wise decision would be to reconsider the loan requirement or pay off some current debts before applying for once again, especially in an emergency situation like medical bills.


Obtaining a personal loan can be more complex than it appears. We know that usually, these loans are needed immediately. However, if your application is rejected, the advice in this article will help you make sure that doesn’t happen again. By applying with the lender whose criteria best suits your eligibility and needs, you have much better odds of ensuring acceptance of short-term loans in India.

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