5 Reasons Why Your Engineer Loan Was Not Approved?
Acquiring a professional loan such as the loan for the engineer for financing your firm or business could be frustrating, especially for first-time borrowers who don’t know much about the processes and steps.
Yes, if you wanted to avail the loan for engineers to establish your business, but faced rejection, there could be something wrong with your creditworthiness or something else.
To clear the picture, let’s provide five most vital reasons your engineer loan could not be approved.
1. You have a bad credit score
The most important factor in determining the eligibility of a borrower is through the verification of his/her credit or CIBIL score. When you have a bad credit history, you are bound to have a bad credit score.
Having a bad credit score negatively affects your creditworthiness. Lenders do not consider your case strong because you have defaulted many times in the past. To improve your score and for the engineers’ loan to be approved, make it a point to pay all your outstanding bills and EMIs on time.
2. You have low income
Having a low income also means having a low repayment probability. Lenders will check your income to know if you would be able to repay the loan for engineer on time or not.
Further, if you don’t have a good monthly flow and if the sum of your loan requirement is more than that of your income, your loan will not pass.
3. You switch jobs or have an inconsistent employment history
Creditors consider only such candidates who have a consistent employment history. If you switch jobs now and then, your loan application will not be authorized. Also, if you are applying for an engineer loan, it will not be approved if you do not have a business vintage of at least 3 years.
4. You provide wrong details/documentation
Before lenders could approve your engineers’ loan application, they will analyze and properly check your personal details and documents. If they find any discrepancies in your documents and other details, they will not spare a moment to reject your engineer’s loan application.
5. Your residential address is on the blacklist
Here is an interesting reason for the loan application (though not entirely your fault) to land in the rejection list. If you live in a premise or a building same as that of a person whose loan application was not approved, or he/she was a defaulter (not paid timely EMIs) with the same lender, they may reject the loan straightaway.
Lenders usually report all defaulters to the CIBIL authority, and all such residential addresses are on the blacklist. Thus, before going to apply for engineer loan, ensure that you live in a creditworthy premise.
The Bottom Line
Various online lenders are waiting to provide you a loan for engineers to help you grow or establish your business if you fulfil the eligibility criteria for the engineer’s loan.
However, they will also reject your loan if you have a case as discussed in the above points.
Take all corrective measures today and enhance your creditworthiness to be ‘engineers’ loan-ready!’
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Category: Loans
