Know some of the main reasons as to why your loan application can be rejected

1. Reasons why loan application
can be rejected

2. Reason 1
• Your residential address is on the defaulter list:
 If you live under the same roof as someone who has previously
slipped loan payments or credit card dues, banks will mark the
address in defaulters list.
 If you apply for a loan the risk of getting loan rejected is high since
your house address.
For more details visit: https://www.letzbank.com/

3. Reason 2:
• Poor track record:
 Your loan application is likely to be rejected if you have poor
track record pertaining to
Credit card
over dues
Telephone bills
Pending loan
EMI’s
Insurance
Premium
For more details visit: https://www.letzbank.com/

4. Reason 3:
• Less income due to more existing loans:
 For approving loan banks check your repayment capability.
 Your income minus your present repayments is your real income
according to banks.
 If this income is less then your application can be rejected.
For more details visit: https://www.letzbank.com/

5. Reason 4:
• Loan guarantor to someone who don't pay up:
 Be careful while you sign on the application as guarantor to
someone.
 It could seem just a sign but it can put you in danger as if the
applicant doesn’t pay the loan you need repay it and late
repayment could trouble your credit score.
For more details visit: https://www.letzbank.com/

6. Reason 5:
• Co-applicant has a poor Credit record:
 Having good credit score is a must for all the loan applicants.
 Even if you have good credit score and your co-applicant have
credit issue reported then your application can be rejected.
For more details visit: https://www.letzbank.com/

7. Reason 6:
• Job instability:
 Banks place a lot of importance on job stability.
 Every bank has its own concern regarding job stability, if you
don’t fall under this criteria your loan may be rejected.
 Even if the company’s future is unstable, the bank reserves it right
to provide a loan to customer.
For more details visit: https://www.letzbank.com/

8. Reason 7:
• Joint loan with your sister or friends:
 Banks as a rule do not provide loans to sisters, brothers or friends
who wish to be co-applicants.
 Only some banks do approve such kind of loans.
 But you can apply loan with parents as co-applicants.
For more details visit: https://www.letzbank.com/

9. Reason 8:
• Previously rejected applications:
 If you have applied for a loan previously which is rejected, it
gets reflected in your credit report.
 This can be a reason for your application being rejected.
 So firstly rectify your credit errors and get update credit report
and then apply for a loan.
For more details visit: https://www.letzbank.com/

10. Contact Us
+91-9347474444
support@letzbank.com
Plot No. 4, 1-98/8/9/A,
Image Gardens Road,
Madhapur,
500081, Hyderabad ,
Andhra Pradesh, India
For more details visit: https://www.letzbank.com/