Need a Personal Loan But Got Refused Everywhere? Here’s What to Do
You are in need of money urgently to meet your personal needs or to meet a monetary shortfall. So, you applied for Personal Loan and you were hoping for a positive response from the bank. But you have been refused a loan! You didn’t expect that rejection.
|Banks||Interest rate (%)||Processing fee|
|Allahabad Bank||8.55% – 13.05%||1.06% of loan amount (Minimum Rs. 1068)|
|Andhra Bank||Clean Loans: 11.70% – 13.20%||Not available|
|Bank of Baroda||11.55% – 16.55%||2% of Loan amount (Minimum: Rs.1000 to Maximum Rs.10,000)|
|Bank of India||12.10% – 14.10%||up to 2% of loan amount (Minimum Rs.1000 to Maximum
|Bank of Maharashtra||11.75% – 12.75%||1% of the Loan Amount (Min.:Rs.1000)|
|Canara Bank||11% – 14%||0.5% of the loan amount (Minimum Rs.1000 and Maximum Rs. 5000)|
|Central Bank of India||11.60%||Rs. 500 + S.T|
|Corporation Bank||12.85% – 13.85%||1.50% (Min. of Rs. 500)|
|Dena Bank||13% – 14%||1% of loan amount|
|IDBI Bank Limited||10% – 12.75%||up to 1% of the loan amount + applicable taxes|
|Indian Bank||10.65% – 11.25%||0.51% on loan amount with a max. of Rs. 510|
|Indian Overseas Bank||11.95% – 13.70%||0.50% (Upto Rs. 5,00,000)
0.75% (Above Rs. 5.00.000)
|Oriental Bank of Commerce||10.25% – 12.25%||0.50% of the loan amount with a minimum of Rs. 500 + Service tax, if any|
|Punjab & Sind Bank||12.80% – 14.05%||1% of the loan amount|
|Punjab National Bank||12.05% – 15.05%||1.80% of loan amount (Rs. 270 – Rs. 450)|
|State Bank of India||11% – 17.05%||up to 1% of the Loan amount|
|Syndicate Bank||12.65% – 13.65%||0.50% of the Loan amount with minimum of ` 500|
|UCO Bank||11.40% – 11.65%||1% of loan amount (minimum Rs.750)|
|Union Bank of India||13.65%||0.50% of the loan amount, subject to minimum of Rs. 500, plus applicable GST.|
|United Bank of India||13.95% – 14.20%||1% of the loan amount sanctioned|
|Vijaya Bank||12.55% – 13.55%||Processing charges: up to 0.75% of loan amount + GST.|
|Axis Bank Ltd.||15.75% to 24%||1.50%-2.00%+GST|
|Bandhan Bank Ltd.||15%-18.55%||1%+GST|
|Catholic Syrian Bank Ltd.||12%-19%||1% of loan amount subject to minimum of Rs.250|
|City Union Bank Ltd.||No Information available on website||No Information available on website|
|DCB Bank Ltd.||They do not provide PL||They do not provide PL|
|Dhanlaxmi Bank Ltd.||10.40%-10.90%||Upto 2.5% of loan amount subject to minimum of Rs.1250|
|Federal Bank Ltd.||11.49%-14.49%||0.50% of loan amount subject to minimum of Rs.500|
|HDFC Bank Ltd||11.25%-20%||Upto 2.5% of loan amount subject to minimum of Rs.1999|
|ICICI Bank Ltd.||10.99%-22%||Upto 2.25% of loan amount+GST|
|IndusInd Bank Ltd||10.50%-30.50%||Upto 2.5% of loan amount subject to minimum of Rs.1000 plus taxes|
|IDFC Bank Ltd.||Rates not available on website (As per our info- 10.99%-15%)||Upto 2% of loan amount|
|Jammu & Kashmir Bank Ltd.||They provide Consumer Loans||They provide Consumer Loans|
|Karnataka Bank Ltd.||12.70%||0.50% of loan amount subject to minimum of Rs.250|
|Karur Vysya Bank Ltd.||15.90%||0.40% of loan amount|
|Kotak Mahindra Bank Ltd||10.99%-24%||Upto 2.5% of loan amount+GST|
|Lakshmi Vilas Bank Ltd.||Do not provide Personal Loan|
|Nainital bank Ltd.||Website not updated|
|RBL Bank Ltd.||11%-26.25%||Upto 2.5% of loan amount|
|South Indian Bank Ltd.||11.55%-14.45%||2% of loan amount|
|Tamilnad Mercantile Bank Ltd.||14.80%||1% of loan amount|
|YES Bank Ltd.||11.25%-17.5%||Upto 2.5% of loan amount subject to minimum of Rs.999|
Your Personal Loan rejection reasons may be one, few or all of the following:
1. Insufficient income: As there is no security involved, lenders will consider your repayment capacity. If you don’t have a stable income and if it is low, you will be refused loans everywhere.
2. If you are over-leveraged: If you have taken other loans and your income is insufficient to repay more than one loan, you could be denied a loan.
3. Not having a stable job and persistent job: Hopping from one job to another may discourage the lender from offering you a loan.
4. If you have applied for a loan several times in the past: Doing this may affect your current application. Numerous loan inquiries create a bad credit score.
5. If you have not given a valid purpose of availing finance, your loan request may be declined.
6. If your income is good and you have taken other loans, but have defaulted on payments, you may face rejection. Other factors for a bad credit score include skipping EMIs, paying EMIs late, late payment of credit card bills, etc.
7. If you have taken too much loan during the last 12 months, your application may be rejected even if you have an excellent credit score.
8. Previous loan rejections also reflect on your credit history. This may affect your current application.
9. Do you have an excellent credit score, but refused a loan? This may result due to the furnishing of wrong information. Before providing finance, lenders do verify all the information you provide.
10. If you have a record of frequently changing your permanent address, your application may get rejected.
11. If you have been a loan guarantor to a repayment defaulter, it will have a negative impact on your credit score. In such a situation even if you have an excellent credit score, you will still be refused a loan.
Besides the aforementioned Personal Loan rejection reasons, there may be other factors that may result in rejection of an application.
To ensure that you are not refused loans everywhere, consider the following:
- Check your eligibility criteria before you apply so that you won’t be refused a loan.
- Submit a statement of your savings and investments.
- Do not submit any false documents.
- Never default on repayments if you have already taken other loans.
- Pay your credit card bills and other payments on time.
- Do not avoid verification calls from your bank where you have applied for a Personal Loan.
- Ensure that your residential address doesn’t match with that of a defaulter.
- Avoid being a loan guarantor. If you have to, read this first: Stop! Read This Before Signing Up as a Home Loan Guarantor
- Do not unnecessarily apply for loans several times.
- Apply for a loan only if you have a good credit score.
- Before applying, ensure that you have a stable source of income.
Also Read: Impact of Aadhar Card on Personal Loan
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