{"id":2197,"date":"2021-02-20T08:22:23","date_gmt":"2021-02-20T04:22:23","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=2197"},"modified":"2021-02-20T08:24:02","modified_gmt":"2021-02-20T04:24:02","slug":"rejects-personal-loan-applications","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/","title":{"rendered":"Why bank rejects personal loan applications?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Was your application for a personal loan rejected once again but you don\u2019t have any idea Why? There is a number of reasons for loan applications are usually rejected by banks. Banks are extremely cautious about checking your eligibility criteria for loan approval. They are likely to reject the application when you do not reach their requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will let you know, <\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"What_could_be_the_reason_to_reject_your_personal_loan_application\"><\/span><span style=\"font-weight: 400;\">What could be the reason to reject your personal loan application<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<figure id=\"attachment_2200\" aria-describedby=\"caption-attachment-2200\" style=\"width: 392px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2200\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2021\/02\/reject.png\" alt=\"Loan rejection\" width=\"392\" height=\"392\" \/><figcaption id=\"caption-attachment-2200\" class=\"wp-caption-text\">Loan rejection<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2335f9dea92\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2335f9dea92\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#What_could_be_the_reason_to_reject_your_personal_loan_application\" >What could be the reason to reject your personal loan application<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Employment_Type_salaried_or_self-employed\" >Employment Type\u00a0 (salaried or self-employed):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Listed_Company_Approved_Employer_list\" >Listed Company\/ Approved Employer list:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Minimum_Salary_Requirement\" >Minimum Salary Requirement :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Salary_transfer_to_the_same_bank\" >Salary transfer to the same bank:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Debt_Burden_Ratio\" >Debt Burden Ratio:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Credit_score\" >Credit score:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/rejects-personal-loan-applications\/#Age\" >Age:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Employment_Type_salaried_or_self-employed\"><\/span><b>Employment Type\u00a0 (salaried or self-employed):<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every bank is likely to know how often you pay back the loan. They need an assurance that you have stable and adequate income to repay your debts. If in this case you are salaried employ the banks more likely to approve your loan as they find it less risky, you get a fixed income every month.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Listed_Company_Approved_Employer_list\"><\/span><span style=\"font-weight: 400;\"><strong>Listed Company\/ Approved Employer list:<\/strong> <\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In UAE, Most of the banks approve a loan for those who are employees in a company that is listed in their own database, This usually makes the job easy for banks to check your financial stability. In general, large companies are listed, where they submit their financial results to the banks on regular basis or banks has visited them and verified the company profile in past.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Minimum_Salary_Requirement\"><\/span><strong>Minimum Salary Requirement :<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>every bank has a minimum salary requirement for their personal loan products, Lowest minimum salary criteria are AED 5,000 across the board, But many banks have higher requirements also. i,e, AED 8,000 or AED 15,000 according their product.<\/p>\n<p>Hence double check your net take-home salary and apply only if it matches the minimum requirements.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Salary_transfer_to_the_same_bank\"><\/span><b>Salary transfer to the same bank:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Most of the banks will approve the loan easily if the applicant has their salary accounts on the same bank where they are applying for the loan. This is because the bank will find it less risky as your income is going to them from which they can automatically deduct the monthly loan instalments when your salary is credited into your account.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Debt_Burden_Ratio\"><\/span><b>Debt Burden Ratio:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The debt burden ratio will have a major impact on your loan approval. My debt burden ratio is calculated by adding all your monthly repayments to the monthly income you earn. According to the UAE central bank, the EMI should not cross 50%. In other words, you will not be given the loan if your DBR comes more than 50% of your salary.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Credit_score\"><\/span><b>Credit score:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Banks can access your credit history by acquiring your credit report from AECB, the credit report includes all your current credits, debts, missed payments which allow them to calculate DBR as well. The credit score will determine your chances of getting a loan. If you have a poor credit score it reflects negative remarks on your credit report. And a poor track record of repayments is a strong reason for banks to reject future loan or Credit Card applications.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Age\"><\/span><b>Age:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The eligibility criteria also take age into account where it ranges from 21 years, and the maximum is 65 years at maturity. If your age is not in the range, then your loan application would get rejected.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Was your application for a personal loan rejected once again but you don\u2019t have any idea Why? 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