Personal loans are unsecured loans that might be declined for a variety of reasons. Multiple personal loan rejections may raise the amount of hard queries on your credit report, lowering your credit score. Hard inquiries indicate a desire for further credit, and lenders may regard you as a high-risk borrower. If you applied for an ICICI Personal Loan and were denied, you should investigate why. Continue reading to learn about the causes behind ICICI Bank Personal Loan Rejection. Personal loans from ICICI Bank include low processing fees and excellent interest rates for short-term necessities such as weddings, medical treatment, education, vacation, and home repairs, among others. Because the monthly income threshold is so low, people with a diverse range of jobs and have a high CIBIL score may be eligible for an ICICI bank personal loan.
Common Reasons
There are six reasons for a personal loan denial, but they differ from lender to lender because each has its own internal creditworthiness and risk assessment process. The following are the most prevalent causes for ICICI bank personal loan rejection:
Job security
Frequent employment changes give the lender the impression that you are untrustworthy of your employer. With such a mindset, securing a personal loan, which is an unsecured loan with no collateral necessary, may be difficult. ICICI Bank prefers that its borrowers have been working for at least two years and, more importantly, that they have worked in the same employment for the preceding year.
Insufficient Earnings
A personal loan is an unsecured loan that may be declined for a variety of reasons. Multiple personal loan rejections may increase the amount of hard inquiries, lowering your credit score. Hard inquiries indicate a desire for further credit, and lenders may see you as a high-risk borrower. If you applied for an ICICI Personal Loan and were denied, you should investigate why. Continue reading to learn the reasons behind bankruptcy alternative. ICICI Bank offers low processing fees and reasonable interest rates on personal loans for short-term necessities such as weddings, medical treatment, education, vacation, and home repairs, among others. Because the monthly income threshold is so low, people with a diverse range of jobs may qualify.
Working for a Blacklist Private Corporation
Doctors, Chartered Accountants, employees of private limited firms, and employees of public sector organisations, including central, state, and district organisations, are the only ones who can get the best ICICI Bank personal loan interest rate. If you do not fall into this category, your personal loan application will very certainly be denied. Even if you work for a private company, your personal loan application may be denied. This might happen if your company slips onto the bank’s list of prohibited businesses.
Age Requirements
You must be between the ages of 23 and 58 to be eligible for a personal loan. Your ICICI Bank personal loan application will be denied if you are not in this age category. The bank establishes an age limit to ensure that you will be able to repay the loan without problem.
Too many programmes are running concurrently.
Another issue that may result in a personal loan refusal is submitting too many loan applications, which gives the lender the appearance that you are desperate for credit and may be a hazardous candidate.
Insufficient CIBIL Score
Having a poor credit rating A high score demonstrates your budgetary responsibility. Lenders consider it a significant factor in determining a borrower’s creditworthiness. A personal loan will be rejected if you have a low credit history. As a result, it is recommended that you follow the steps on how to improve CIBIL score before applying for a personal loan. This might be one of the main reasons your ICICI Bank personal loan application was rejected.
These are the most common reasons why a loan application is declined. To avoid rejection, you must undertake comprehensive research on the loan before applying.
