❌ Top 5 Mistakes That Get Your Loan Application Rejected

📅 Updated: May 2025
✍️ Published by: Vizzve Financial

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🤔 Why This Blog Matters

Every month, lakhs of Indians apply for personal loans — and a large number face rejections. Most don’t know why. Whether you’re applying for your first loan or have faced rejection before, this guide can help you avoid common pitfalls and secure faster approval, especially with AI-driven platforms like Vizzve.

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🚫 Top 5 Common Reasons Your Loan Application Gets Rejected

1. Low or No CIBIL Score

Your CIBIL score is often the first thing lenders check. If your score is below 650 or you have no credit history:

• Banks may reject your loan outright.

• You’ll face higher interest rates if approved.

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✅ Vizzve Solution: We use alternate data + AI to approve even low-CIBIL applications!

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2. Mismatch in Documents or KYC Details

If your PAN, Aadhaar, or address proof don’t match — or if your documents are blurry — it leads to automatic rejection.

⚠️ Common document issues:

• Wrong address or spelling errors

• Expired ID proof

• Incomplete salary slip or bank statement

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✅ Vizzve Tip: Use our easy eKYC flow with Aadhaar + PAN for instant verification.

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3. Unstable Income or Job Gaps

Lenders prefer salaried individuals with at least 6 months of job continuity or stable business income.

🚫 Frequent job switches or income dips raise risk flags.

✅ Vizzve Fix: Freelancers and gig workers are evaluated via bank transaction patterns, not just employer details.

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4. Multiple Loan Applications in a Short Time

Every time you apply for a loan, it creates a “hard inquiry” on your credit report. Too many inquiries = risk of rejection.

⚠️ Why this matters:

• It shows desperation or poor financial planning

• It drops your CIBIL score even further

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✅ Pro Tip: Apply once, and smartly — start with Vizzve, where eligibility is pre-checked using soft inquiries.

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5. High Existing EMI Load or DTI Ratio

Your Debt-to-Income (DTI) ratio matters. If you already have ongoing loans, and EMIs consume more than 40–50% of your monthly income, lenders hesitate.

✅ Smart Move: Use the Vizzve Loan Planner to restructure or consolidate loans before applying again.

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🛠️ Quick Checklist Before You Apply