You should always apply for as little money as possible. In other words, apply for the amount you need and not what you want. Many people make the mistake of applying for a large amount and having difficulties paying off the instalments. This can also damage your credit score beyond repair. Defaulting on a loan is definitely something you want to stay away from. Also make sure that you do not over report your income and apply for a vippi loan. If you have inflated your income in the application process and the loan officer overlooks the same, you may end up having to pay your entire monthly salary as an instalment for your loan.
Another common reason for rejection is holding too many loans at a time. Try to avoid the same by paying off your current liabilities before applying for a new personal loan. In addition, you need to keep in mind that while too many loans can be tempting, it is certainly not feasible when almost your entire monthly pay-check will get exhausted paying off the instalments.
Try and control your finances by making small monthly savings that can come handy when an emergency comes up.
Creditors also look at an individual’s work history while granting a loan. Too many jobs in a short period show lack of stability. However, a single job for a long period shows seriousness in your character. If you have changed multiple jobs in a short span of time, you might not be eligible for a personal loan.
If you’ve taken any kind of loan in the past and you have failed to repay it on time or you’re still repaying the loan but you have missed a few installments, you could have the loan denied. In this case, you need to clear all your debts and pay back all the pending loans in a timely manner and wait till your credit score which is based on the performance of your loan payback improves.