Banks and non-banking financial companies (NBFCs) take into account several factors when they receive an application for a Chartered Accountant Loan or any other loans before they approve it.
Some of the most important deciding factors while processing your CA loan are income, age, employment stability and of course the CIBIL score which depicts your creditworthiness.
At times, when any of the above does not meet the eligibility of a prospective lender, your Chartered Accountant loan may be rejected.
Let’s quickly list out four major reasons that may lead to a CA loan rejection.
1. Bad CIBIL score or loan repayment history
The CIBIL authority maintains credit scores for all. If you have a long pending credit card bill, it will reflect on your credit score and give it a negative ranking. Your score hampers if you have not paid EMIs of your loan in a timely manner. In these circumstances, a lender may reject your Chartered Accountant loan application.
Thus, to improve your CIBIL score and your loan application to be approved, try paying credit card bills and loan EMIs on time or before the due date to avoid rejection.
2. Low income and outstanding loans
If you have multiple loan debts, your net income will go down. If you apply for a loan in such conditions, there are high chances that a lender will reject your loan.
First of all, avoid applying for a loan when you have various loan debts to clear off. Make arrangements to clear off all outstanding credit bills to become eligible for a loan yet again.
3. Frequent changes in the employment
Did you know that a majority of creditors look for reliable and sound job stability while processing a CA loan or other loans? Yes, if you want your loan to approve, ensure that you have a steady job.
Most of the lenders will see if you have been working with a company for 2-3 years or not. Many people don’t consider this and apply for a loan and face rejection.
Thus, when you want a loan for sure, do not switch jobs now and then and if you changed your employer recently, do not apply for the loan.
4. Past loan rejection history
Always remember to never apply for a Chartered Accountant loan when you have a history of prior application rejection.
If a creditor has rejected your loan application in the past, it affects your CIBIL score negatively which will again lead to a rejection if you apply to another service provider.
Take a breather when you face a loan rejection and deploy all corrective measures such as paying all bills before the due dates, loan EMIs, etc. to again become eligible gradually.
The Bottom Line
Do not lose heart when you face rejection for a Chartered Accountant loan application or any other loan. Consider these discussed pointers to analyze your current situations and implement suggestions to become eligible soon! All the best!