Why do personal loan applications get rejected

Vishal Anand, a graphic designer makes good profits in his business, pays taxes regularly, pays his bills on time and invests his money sensibly. Why then, is that, his personal loan application gets rejected?

CIBIL credit score is probably one of the most important factors that helps decide banks on your loan application. That is, however, not the only one factor-there is a number of others which affect the destiny of your personal loan application.

Let’s see why personal loan applications get rejected.

Adverse remarks in your CIBIL reports can always play a dampener. Remarks such as ‘written off’ or ‘settled’ make banks cautious and wary of providing loans to such clients. These remarks indicate that you did not pay our previous loans in full and that the bank had to forgo its money.

Too much loan payout or you may have not paid loans regularly make banks disinterested. If you are already paying your EMIs, your high payout ratio will reflect I bank’s calculations and the bank officials understand that you would not be able to shoulder the burden of further EMIs and you are likely to default in repayments. Your debt to income ratio must be in the higher side for bank to reject your loan application.

Your database credential match with some other defaulter, your loan application might get rejected, though by mistake. This is very tough to confirm with the banks, since they usually do not disclose why they rejected your application. Make sure the residence address is not connected to any defaulter, through the previous owners of the house that you live in, for example.

How to Know your Eligibility for Union Bank of India Personal Loan?

Union Bank of India is a prominent banking institution in India that offers some really good personal loan schemes to borrowers. It wouldn’t be wrong to say that this bank has captured a fair share in the Indian personal loan market with most borrowers choosing this bank over the others. They not only offer loans at affordable rates, but also provide some simple repayment options. However, one of the things that could cause a bit of a trouble initially is the Union bank of India personal loan eligibility. Personal loan eligibility should be met by every applicant for getting his/her application approved. Union bank of India has set certain conditions and applicants who fail to fulfill all such conditions are not granted a loan.

Most people rely on Personal loan eligibility calculator  which is not the only thing that could help you find the loan eligibility. Even though such a tool offers you some help in the process, your main motive should be to understand the facts upon which your eligibility is based so that you can fulfill all the requirements before applying for a loan. Whether you’re looking to meet financial requirements, wedding expenses or planning a holiday, the Union bank of India personal loan will help you fulfill all your needs in an efficient way. Have a closer look at the key factors that are to be taken into consideration for knowing your eligibility for a personal loan.

 Key features of the Union bank of India personal loan

• Interest rate – 15% per annum
• Moratorium Period – Nil
• Repayment period of up to 5 years
• No collateral security required

 Employment Stability

A salaried individual who has been in the service industry for at least 2 years is eligible for a personal loan. A self employed individual with 5 years of experience in any particular industry is also held eligible for the loan.

 Age Criteria

The Personal loan eligibility calculator India takes into consideration the age of an applicant while assessing the eligibility requirements. Anyone who wishes to apply for a personal loan with the Union bank of India needs to be between the age group of 21-60 years. For self employed individuals, the age group is 25-65 years.

 Current Financial Situation

The present financial situation of an applicant also helps in determining the eligibility for a personal loan. A person with a good credit history tends to get a personal loan easily, whereas an individual with bad credit is not granted a loan unless he follows certain key steps. The financial condition of an applicant helps the banking institution in determining his/her repayment capability.

 Credit Rating

The CIBIL’s credit rating is another key factor that decides whether an applicant is eligible for a loan or not. As a borrower, you must have a good credit rating that verifies the fact that you don’t have any outstanding dues that are waiting to be paid off.

Once you know your eligibility for a personal loan, you can easily secure a good deal for meeting your financial requirements. Choose Union bank of India for the best personal loan schemes in the country.

How to calculate Interest rates for Axis Bank Personal loans

Axis Bank, one of India’s most popular private sector banks offer low interest personal loans making it one of the most sought after banks when it comes to loan offerings. Axis Bank has a well defined interest rate policy depending on the loan applicant and his or her repayment capacity. The average rate of interest for Axis Bank personal loan ranges between 15 to 24%. Online users can check the exact rate of interest for their individual case using Bankbazaar.com personal loan calculator . The tool gives a complete breakup of the loan including processing fee, other charges, the possible equated monthly instalments depending on the loan amount and tenure.Bankbazaar.com’s loan calculator tool also checks for personal loan eligibility for Axis Bank.

Axis Bank Personal Loan Interest Rates: Axis Bank offers monthly reducing balance for personal loan interest rates. The rate of interest for personal loans varies between 15% to 24% depending on the individual and his or her loan eligibility criteria. The bank charges a loan processing fee ranging between 1.5 to 2% of the loan amount. The loan processing fee is deducted from the loan amount beforehand. Axis Bank offers a personal loan amount ranging from Rs 1 Lakh to Rs. 15 Lakhs. No guarantor or collateral or security is required for Axis Bank personal loans. The loan tenure for personal loans offered by Axis Bank ranges from 1 to 5 years making it suitable for people with various loan amounts.

Axis Bank Personal Loan Eligibility: Personal loans from Axis Bank are available for individuals from 18 years of age to 60 years of age. The minimum loan amount that is available under Axis Bank personal loan scheme is Rs 25,000. The quantum of loan amount can be increased or decreased depending on the individual’s financial history and bank’s discretion. For salaried individuals a minimum one year of work experience is required before being eligible to avail personal loan from Axis Bank. The annual income of a salaried individual must be more than Rs. 1, 80,000 per annum with an age limit between 21 to 6o years. From self employed individuals and working professionals the minimum annual income must exceed the minimum threshold of Rs. 2,00,000 per annum along with a minimum three year experience window in their work to be eligible for Axis Bank personal loans.

Features and benefits of Axis Bank Personal Loan: Axis Bank offers a wide number of features and benefits for its personal loan clients. Axis Bank has lucrative interest rates which are competitive with other banks and non-banking financial companies. Axis Bank has collaborated with Bankbazaar.com, the country’s biggest online marketplace offering lowest interest rates online. Apart from attractive interest rates for personal loans, Axis Bank offers a balance transfer facility allowing users transfer their loans from other banks to Axis Bank. Simple procedure, minimal documentation and quick loan approval process makes Axis Bank one of the most sought after bank when it comes to personal loans.

How to close HDFC Personal Loan

There are times when you get a bonus from your office or experience increased sales in your business in a particular month and want to prepay your personal loan and close it down. There is a specific procedure to foreclose loan accounts with different banks and you may be looking for how to close HDFC Personal loan account.

Procedure to Close HDFC Personal Loan Account

If you wish to close your HDFC personal loan , you have to adopt the following procedure:

You should have already paid alteast 12 EMIs if you are salaried and at least 6 EMIs if you are self-employed. Only then you are permitted to foreclose your personal loan account.

You need to call up your customer care executive and find out where you need to go to close the account. Unlike there is no restriction on where you fill the EMI, there are restrictions to where you can close your account and these restrictions vary from bank to bank. Some allow you to close your loan account only at your home branch where you applied for the loan, while others ask you to approach the head branch of your area. So you need to confirm first.

Once you confirm where you need to go, you should look at how much of your loan amount is left. For that, you can go online if you have an online account and are well versed with technology, or else visit your home branch to find out. Other branches are not allowed to disclose such details. In addition to the balance amount, you also must enquire about any pre-closure charges that might be applicable to you and ask the official to tell you the total amount that you need to carry to the branch when you visit the branch to close your account.

Once you know how much you have to pay and where you have to pay, you need to carry your ID proof the amount of money you need to pay, whether in cash or cheque s both are acceptable and your loan account number.

When you visit the designated HDFC Bank branch, you need to fill-up the loan closure application form that you get from the branch. When you complete the application form and hand it over along with the money or the cheque, ensure that you get an acknowledgement of the money that the bank has received from you. You should keep this copy safely until you get the loan closing agreement.

The loan closing agreement will be mailed to the address that you provided at the time of opening the account, if there are changes to it, you should immediately inform the bank there are then so that the bank can look for a way out, they would then either update your address there and then or else request the head office to mail it to the branch address, from where you can collect the document in person.

You should read the entire document thoroughly to understand that the bank has no further liability on you.

In addition to taking a no-objection certificate from HDFC bank, you should also apply for your credit report from CIBIL to find out whether the bank has correctly reported loan closure to CIBIL and whether CIBIL has already reflected that in your report or not.

Following the above spelled out steps you should not be in any doubt now as to how to close HDFC personal loan account.