Rupee Times has already covered on how to increase ones loan eligibility. Taking this forward Rupee Times discusses some of the uncommon reasons for rejection of loan application.
Lenders consider a host of factors before granting any loan. The parameters and criteria to determine the eligibility and quantum of loan differ from one lender to lender. Getting a loan application approved is often knowing how to keep lenders from saying ‘No' to the loan. Most of the loan seekers these days are well acquainted to the rules involved to get loans and they are also aware of the reasons a bank might refuse their loan application.
It is also true that home loan requires today has a huge requisite list added to it before applying for the same. One need to zest up their credit score, ensure timely payment of credit card dues, close all the earlier loans and increase one's income levels. However, these are not only the reasons one might have to face a loan rejection.
Sometimes, there are certain other indirect reasons which could be causal for the rejection of the loan. Being aware of these reasons could be of help to the applicant to understand how to deal with the rejection and how to get a loan without much difficulty.
Here are few reasons for loan rejection which normally people are not aware about:
Frequently switching jobs
Job hopping has become a very common trend for the current generation today. Today's generation starts feeling like a veteran in just one year of being associated with an organization. However, job hopping may not be considered a virtue by banks today. Banks could simply imply it as instability in job and find it a good reason to reject the loan application. Banks stresses a lot on job stability and certain banks have even made it mandatory that the applicant needs to be employed with a particular company for three or more years to be eligible to get a loan. The banks take into consideration the stability of the company one is working for while processing a loan application. If it seems unstable, bank can reject the loan application by the applicant from that company.
Constantly changing jobs might affect the credit worthiness of the applicant. So, it is highly advisable to the applicant to stick to a particular job for a minimum period of a year to get the loan sanctioned.