Personal loans are unsecured loans that can be denied for a variety of reasons. Multiple personal loan rejections may raise the number of hard inquiries on your credit report, lowering your credit score. Hard inquiries indicate a desire for additional credit, and lenders may regard you as a high-risk borrower. If you applied for an ICICI Personal Loan and were denied, you should investigate why. Continue reading to learn about the reasons for ICICI Bank Personal Loan Rejection. Personal loans from ICICI Bank have low processing fees and attractive interest rates for short-term needs such as weddings, medical treatment, education, vacation, and home renovations, among others. Because the monthly income criteria is so low, people with a diverse range of jobs that have a significant high online free CIBIL score may be eligible for an ICICI bank personal loan.
Reasons for Loan Rejection
There are six reasons for a personal loan rejection, but they differ from lender to lender because each has its own internal creditworthiness and risk assessment process. The following are the most common reasons for ICICI bank personal loan rejection:
Frequent job changes give the lender the impression that you are untrustworthy of your employer. With such a mindset, obtaining a personal loan, which is an unsecured loan with no collateral required, may be difficult. ICICI Bank prefers that its borrowers have been employed for at least two years and, more importantly, that they have worked in the same job for the previous year.
A consistent source of income demonstrates your ability to repay your personal loan. To qualify for a personal loan, each bank establishes a minimum monthly or yearly income requirement. ICICI Bank, on the other hand, has set a minimum net monthly income of INR 17,500. However, the income limit varies from city to city. Applicants in Mumbai and Delhi could earn INR 25,000, while those in Chennai, Hyderabad, Bangalore, Pune, and Kolkata could earn INR 20,000. Your ICICI Bank personal loan application may be denied if you do not meet this minimum income requirement.
Blacklist Private Corporation
Doctors, Chartered Accountants, employees of private limited companies, and employees of public sector organisations, including central, state, and district organisations, are the only ones who can get the best ICICI Bank personal loan interest rate. If you do not fall into this category, your personal loan application will almost certainly be denied.
Even if you work for a private company, your personal loan application may be denied. This could happen if your company falls into the bank’s list of prohibited businesses.
You must be between the ages of 23 and 58 to be eligible for a personal loan. Your ICICI Bank personal loan application will be denied if you are not in this age group. The bank establishes an age limit to ensure that you will be able to repay the loan without difficulty.
Too many applications are running concurrently
Another factor that may result in a personal loan denial is submitting too many loan applications, which gives the lender the impression that you are desperate for credit and may be a risky applicant.
Insufficient CIBIL Score
Having a poor credit rating A high score demonstrates your fiscal responsibility. Lenders consider it an important factor in determining a borrower’s creditworthiness. A personal loan will be denied if you have a poor credit history. As a result, it is recommended that you follow the steps on how to improve your CIBIL score before applying for a personal loan. This could be one of the main reasons your ICICI Bank personal loan application was rejected.