Getting a loan rejected can be frustrating, especially when you need money urgently. But don’t worry—Vizzve Finance is here to help you understand why your loan may have been denied and how to bounce back immediately.
Here are the top 7 reasons loans get rejected—and smart solutions for each:
1. Low Credit Score
Why it happens:
Your credit score reflects your repayment history. A score below 650 often signals high risk to lenders.
What to do:
Check your credit report for errors and pay off outstanding dues. Start using credit responsibly to rebuild your score.
💡 Vizzve Tip: Vizzve offers loan products even for low-credit-score applicants, based on other criteria like income stability.
2. Unstable Employment or Income
Why it happens:
Frequent job changes or inconsistent income (especially for freelancers/self-employed) makes lenders cautious.
What to do:
Submit proof of stable income like IT returns, bank statements, or client contracts.
🧾 Vizzve Insight: Vizzve Finance supports gig workers, self-employed professionals, and freelancers with tailored loan options.
3. High Existing Debt Burden
Why it happens:
If a large portion of your salary goes toward EMIs, banks hesitate to give you more credit.
What to do:
Close small loans or use a debt consolidation loan to reduce your monthly EMI load.
🔄 Use Vizzve: Combine multiple loans into one manageable EMI and avoid rejections.
4. Incomplete or Incorrect Documentation
Why it happens:
Errors in KYC, address proofs, or income statements lead to delays or outright rejections.
What to do:
Double-check your paperwork before applying. Upload clear, updated documents.
📄 Vizzve Advantage: Our team assists with document checks before submitting your application.
5. Frequent Loan Applications
Why it happens:
Applying to multiple lenders within a short time drops your credit score and shows desperation.
What to do:
Avoid multiple applications. Instead, compare offers through a trusted platform like Vizzve.
🧠 Smart Move: Use Vizzve to match you with pre-approved loan options based on your profile.
6. Age or Employment Type Mismatch
Why it happens:
Some lenders have strict criteria for minimum/maximum age or only approve salaried applicants.
What to do:
Choose lenders who accept your profile type (e.g., self-employed, senior citizen, or new job holders).
🎯 Try Vizzve: We connect you with lenders that match your exact profile—no generic rejections.
7. Loan Amount Too High for Profile
Why it happens:
If the requested loan amount exceeds your repayment capacity, your application may be rejected.
What to do:
Lower the requested amount or add a co-applicant with stable income.
🤝 Vizzve Suggestion: Our eligibility calculator helps you apply for the right amount—improving approval chances.
Conclusion: Rejection Isn’t the End. It’s a Redirection.
A loan rejection is not a final “no.” It’s a sign to improve your profile or choose the right lender. At Vizzve Finance, we analyze your application, guide you with improvements, and match you with lenders who actually approve.
FAQs
Q1. Can I reapply immediately after a loan rejection?
Ans: Yes, but only after fixing the issue that caused the rejection. Vizzve helps you identify and resolve those issues.
Q2. Will my credit score drop after a rejection?
Ans: The score drops only if many lenders check it within a short time. Avoid multiple applications—use Vizzve’s pre-check tool instead.
Q3. Can Vizzve help if my credit score is below 600?
Ans: Yes. We work with lenders offering loans for low-credit-score individuals under certain conditions.
Published on 3rd july
Publisher : SMITA
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