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Before getting a loan from banks or NBFC's or other financial institutions, even with good credit score your loan gets rejected. So let us know the Reasons for loan rejection.

 

1) Income

If your Income is not above the bank limit to get loan, then your loan gets rejected. Always check the Income eligibility before applying for loan.

 

2) EMI to Income Ratio

Suppose your salary is Rs 1 Lakh and if you are already paying Rs 60K as Home Loan EMI, then chances of getting the required loan may get rejected. Make sure your EMI is not more than 30% of your salary, otherwise getting a loan could be a problem.

 

3) Age

If your Age is 30 or 40 or 50, then getting a loan is higher with good credit score, EMI to income ratio and Income. But if your age is above 60 then chances of getting a loan is difficult.

 

4) Work Experience

Most of the banks requires to know your work experience. If the work experience is less than 2 years, then your loan gets rejected by the bank.

 

5) Job Change

If you changed the job 4 to 5 companies in a year, there is a chance of loan rejection by the bank or any financial institution.