Taking a car loan has been easier only if you have accurate documentation, good financing behavior, and high scoring credit history. But a few of them fails in succeeding the car loan application because of some crucial challenges in the process. We have got a few feedbacks from our customer on getting the car loan application rejected even after having a good CIBIL score. Let us tell you that there are a few challenges and hurdles that every applicant needs to go through and cross it to approve the car loan application. These hurdles are hidden and the applicant fails to vision them. In this article, we will provide you some potential insights and answers that will help you from saving your application to go to the rejection zone. We would request you to study the reasons carefully as it will guide you in a very positive way in the future.
If the borrower’s loan application has been rejected many times then the information remains present with CIBIL and the earlier prospective lenders. When the borrowers apply for a fresh loan, the history is pulled up by the new lender. Moreover, the rejected loan info can even be improved with the Credit Information Report and a good CIBIL score of the borrower resulting in the applicant’s loan rejection.
Opting for a loan with friends and relatives
If you have already applied for a loan with your friends or sister then your application shall be rejected. Joint loans with brothers or parents are mostly preferred and approved in the banking industry.
Co-applicant has poor CIBIL record
If you are borrowing a loan with another applicant, then you should ensure that the co-applicant’s CIBIL record is on the mark. If your co-applicant has a poor CIBIL record then your application is dropped into the rejection section and they are high chances of never applying for a loan again.
Unbalanced Secured and Secured Loans
There is a healthy combination of secured and unsecured loans in your loan section. Secured loans are home loans and car loans that attain by the borrower by keeping the applicant’s assets such as property and car as collateral with the creditor. This indicates a signature loan. If the loans are unbalanced in terms of unsecured loans outweighing secured loans, then lenders will term you a bulk credit debt and reject your car loan application even when you’re scoring a good CIBIL history.
Making Frequent Queries
If you apply for multiple car loans at the same time or submitted an application for the same loan to other lenders, you will term a frequent inquirer by CIBIl even when you are good with your CIBIL score and credit history. There are complete chances of standing your car loan application in the rejection.
Demonstration of Savings
If the borrower showcases the lender applicant’s savings then the lender has a good chance to cross-check your financial profile. Canara Bank Car Loan EMI Calculator helps you calculate your CIBIL score. Moreover, if the borrower does not submit a detailed financial profile with the savings portfolio to the lender, then the loan may get rejected.
Unable to confirm credentials
If the lender fails to confirm or verify any part of the borrower’s key credential information for a period of time, then the borrower application stands on a rejection zone regard having a good credit history.
Hope we have to provide a good amount of information on the challenges faced by the applicants in the car loan application process. If you are looking to get a loan, a Car Loan Apply Online facility help you in availing the loan from the mobile app. If you have any doubts regarding the subject or are still confused about making it to the car loan, our customer care support is willing to help you with appropriate information on the same.
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