Loan rejection can feel frustrating — especially when you're in urgent need.
At Vizzve, we’ve analyzed 10,000+ applications and here’s what we know: most rejections are avoidable if you know what lenders really look for.
Let’s break down the top reasons loans get denied — and what you can do to fix them before applying.
🚫 1. Low Credit Score (Below 650)
Lenders use your CIBIL or credit score to judge your repayment ability. A score below 650 often raises red flags.
✅ How to Avoid:
Check your score on apps like Vizzve before applying
Pay EMIs & credit card dues on time
Avoid too many recent credit inquiries
🚫 2. Insufficient Income
If your monthly income is too low for the loan amount requested, lenders fear you’ll struggle to repay.
✅ How to Avoid:
Use Vizzve’s EMI calculator to plan loan amounts within 30–40% of your monthly income
Apply for a smaller loan or longer tenure
🚫 3. Incomplete or Incorrect Documentation
Mistakes in PAN, Aadhaar, bank statements, or missing employment proofs lead to auto-rejection.
✅ How to Avoid:
Upload clear and updated documents
Double-check spellings, numbers, and address info
Ensure your name matches across all documents
🚫 4. Existing Loan Overload (High DTI)
If you already have multiple EMIs, your Debt-to-Income Ratio may be too high — which alarms lenders.
✅ How to Avoid:
Clear smaller debts before applying
Pre-close older loans
Keep combined EMIs under 40% of monthly income
🚫 5. Frequent Job Changes or Unstable Employment
If you've changed jobs often or have less than 6 months in current role, lenders may see you as unstable.
✅ How to Avoid:
Wait till you've completed 6+ months at your current job
Include freelance or side income proofs if applicable
Try applying through NBFCs like Vizzve, which are more flexible than banks
🚫 6. Applying for Too Many Loans at Once
Each application triggers a hard inquiry on your credit report. Multiple inquiries reduce your credit score.
✅ How to Avoid:
Don’t apply at multiple places simultaneously
Use a platform like Vizzve that pre-checks eligibility without hurting your score
🚫 7. Mismatch Between Loan Purpose & Profile
Applying for a business loan under a salaried profile or a high-value personal loan without sufficient justification can cause rejection.
✅ How to Avoid:
Be honest about loan purpose
Match loan type to your profession and documents
Use loan for intended purpose only
💡 Vizzve’s Smart Application Tips
✔️ Run a free eligibility check
✔️ Upload only valid & readable documents
✔️ Avoid multiple loan apps — use Vizzve’s all-in-one platform
✔️ Get live support to fix profile issues before final submission
📲 Vizzve: Making Loan Approval Smoother
Fast digital verification
Flexible for freelancers & gig workers
Pre-check tools to avoid rejection
Credit-building tips for future success
💬 “Don’t guess. Prepare smart with Vizzve – and get your loan approved, stress-free.”
❓FAQs
Q1: Will a loan rejection affect my credit score?
Yes, especially if multiple rejections happen. But one soft rejection won’t hurt much.
Q2: Can Vizzve help me if I was rejected elsewhere?
Yes. Vizzve works with flexible NBFCs and can help you reapply with better positioning.
Q3: What’s the easiest loan to get approved?
Personal loans under ₹50K or gold loans have higher approval rates with proper documents.
Published on : 28th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed