A medical emergency, vacation abroad, home renovation etc., are just some of the numerous reasons for which we need a personal loan someday in our lives. Whatever the reason for the urgent requirement of funds is, going for Kotak bank personal loan apply can help you to bail yourself out of any such financial crises. And thanks to personal loan’s prime features like quick disbursal, zero collateral requirement and no restriction on end usage of the loan amount, it’s a convenient and suitable credit option to help in fulfilling financial shortfalls.
So, before you go ahead with a personal loan application, it’s prudent to know the top reasons that usually lead to getting to know that the application got rejected upon checking the Kotak personal loan application status. By being aware of these reasons, you can be better prepared and ensure approval of your personal loan application.
Weak credit score
Over the past decade or so, an applicant’s credit score has become one of the most vital parameters factored in by lenders when evaluating a personal loan applicant’s application and checking if they qualify for the set eligibility criterion. Moreover, credit score’s role towards determining your loan eligibility as well as approval chances is steadily becoming even more prominent thanks to the rising degree of financial inclusion coupled with awareness amongst people. Applicants who possess a good credit score are generally holding higher chances of not only going for Kotak bank personal loan apply but also getting approval, as they are considered to be more financially disciplined towards their credit repayment, and thus, tend to be perceived as those with a lesser degree of credit risk for the lenders. Additionally, some lenders also go with the practice of risk-based pricing, in which they provide lower rates to personal loan applicants having good credit scores. But on the flip side, those with weak credit scores might be subject to either face rejection or get charged with relatively higher interest rates to make up for the higher credit risk for the lenders like banks, fintech and NBFCs.
Thus, ensure to make it a priority and not just an option to build plus maintain a good credit score. This way, your personal loan eligibility gets boosted, besides your chances of fetching lower interest rates witnessing a rise. You can work towards a strong credit profile by following these healthy credit practices-No irregularity in repayment of loan EMIs along with credit card bills, restricting the overall credit card spending within 30% of the total credit limit, periodically ensuring to monitor guaranteed or co-signed loan accounts, never submitting multiple credit applications to lenders within a short time span, and ensure maintenance of a balanced and healthy credit mix. Moreover, do not ignore the vital habit of reviewing your credit report at regular intervals from time to time. This crucial habit will allow you sufficient time to make corrective efforts to improve your credit score is required before you go ahead to apply for a Kotak personal loan and then check Kotak personal loan application status to get an update on its approval or rejection.
Having a past history of instability in employment
Another not so talked about yet vital factor that can affect your Kotak personal loan application status is job stability. When checking your application and evaluating it, many banks have a look at the applicant’s employment history as well as job stability, in which frequent job switches might be depicted as a signal of having career instability, hence irregular income inflow. Consequently, banks may hesitate to lend to such applicants.
Low income
When applying for a personal loan, of course, you would be required to repay it through EMIs, right? That’s why your income is amongst the very first parameters put forth by banks when an applicant applies for it. For almost all loan products, banks generally put forward a minimum income criterion for loan applicants in order to be eligible for loan as per the eligibility criterion set. Banks can also require a specific minimum income per the applicant’s location, like in the rural or urban area. Those who do not meet this income criterion can face rejection even without being considered for other factors such as credit score. And since this criterion differs across many lenders, applicants should ideally compare multiple lenders and their requirements and offers, based on their monthly income along with another eligibility criterion, before going ahead with Kotak bank personal loan apply.
Falling outside lender’s age bracket
Apart from income, lenders also put forth a set, and rigid age bracket wherein applicants have to fall when thinking of going for Kotak personal loan apply. Both the borrower’s current age and also the expected age at the end of personal loan repayment tenure while assessing loan eligibility are usually factored in. And those failing to aptly fit into the minimum and maximum age bracket, such as 21-60 years, are generally denied a loan. Moreover, personal loan applicants who are nearing retirement also often face difficulty in getting their loan application approved due to the usual dip in the income post-retirement, which increases the risk of loan default. This consequently results in lenders at times preferring the completion of loan repayment during work-life years, i.e.before one retires. Applicants nearing retirement but requiring a loan can consider adding a co-applicant with a good credit profile and stable income to boost the overall loan eligibility and approval chances. Always ensure to time to time check Kotak personal loan application status to know whether your application is processed and got rejected or accepted.
Applying without checking eligibility criterion
With lots of personal loans offers to be present in the Indian banking industry, thanks to almost all lenders offering this personal loan product to a wide range of consumers, their interest rates vary significantly amongst them. And, as the credit evaluation process, as well as the risk appetite of lenders, can also vary, the chances of personal loan approval & the interest rates charged for the loan would widely differ across lenders and customers. Thus, those planning to go for Kotak bank personal loan apply should also compare the offers from as many lenders as possible before selecting anyone. Also, remember to always compare multiple personal loan options available from prospective lenders like banks, NBFCs etc., based on your eligibility criterion, and only after factoring in parameters like monthly income, credit score, current age, job profile etc. Note that you must also check Kotak personal loan application status after submitting an application in order to remain aware of whether it is getting processed and approved or not. Even if it gets rejected, you must be aware of that so that you can take corrective actions.
