Discover the key factors leading to personal loan rejections. From credit scores to income levels, explore the common reasons behind declined loan applications. Personal Loans are one of the most commonly availed loan products in India. Being an unsecured loan, it is sanctioned based on the applicant’s repaying ability and credit score. Unlike other loans which are issued for a specific purpose, a personal loan can be used for a range of purposes. Since, the banks do not obtain any security for it, the verification process before issuing loans is stringent and that’s the reason the rate of rejections in Personal Loans are high compared to other types of loans.
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