6 Conditions That Can Result To Loan Rejection

Getting a loan may change someones life. But if an application is rejected, the dreams are shattered, and a single rejection will lead to problems in the future.

Conditions that can result in loan rejection

Previous defaults

sdzcfgvhbjnBanks draw their list of defaulters, and this information is available to all their branches. This information is looked into when a person applies for a loan. The information is then used in addition to the CIB score and the credit report provided by the CRB.

Job stability

An applicant’s job is an important factor when applying for a loan. If the person changes jobs very frequently, it might be a negative point when applying for a loan. A stable income and employment record is very favorable when applying for a loan. The banks will have a positive outlook for people with a stable track record. The loan will be given based on a good employment track record since it gives the idea of stability in one’s life to the bank

Bad credit score

Among the conditions that can result in a loan, rejection is a bad credit score. The Credit information/referral Bureau shares the credit details of an individual with all the financiers. These details include information on a borrower’s present and previous loan transactions. Banks provide all the credit information on all the borrowers to the credit information bureau. Using this information, credit information bureau creates the CRB trans union score and the CRB score. CRB awards score based on the assessment of the information provided by the banks. Banks call for a CRB report as soon as a person applies for a loan

Loan guarantor

At some cases, people become a guarantor for the family members or friends. If you are a guarantor in case of default, then it will pose a problem. The CRB report will automatically show the person as a defaulter for the loan, even though the person was only a guarantor. One should be very cautious while giving his/her name as a guarantor

Too many loans

qwesdrfghvWhile lending money to an applicant, the banks will add all the existing outstanding loans from all the banks. This will help in determining the amount an applicant is eligible for. Then the ratio of loan to income is calculated by the bank before extending a loan.

Tax record

Banks also make a thorough assessment of a tax profile by asking for the ITR copies of previous years including tax deducted at source/professional tax paid against the salary in the past. Not providing such information will lead to rejection. So its always best to obtain the right papers.


3 Of The Quickest Ways To Become Rich And Successful

Before anything else, it’s worth mentioning here that getting rich isn’t going to be easy but you can fast-track the process by being smart with your strategy. There are several factors that will affect how successful you will become. The good news is that you can influence these factors by coming up with a long-term plan that takes into account all possible barriers to your success. And of course, the plan you make should take you on a path through some of the quickest ways to become rich. Three of the best of these paths are discussed in more detail below.

3 of the quickest ways to become rich and successful

Start a business

2qwesdxfcgvbThis is by far the most efficient strategy on how to become rich in a short period. What’s great about starting a business is that there’s no limit on how fast you can grow. As long as your profits are growing, you can expand the business in more ways than one.

The biggest drawback when it comes
to starting a business is the funding. However, this shouldn’t be much of a problem if you have a sizable amount of savings, or you have friends and family who can lend you your startup capital.

Invest in the stock market

It’s a bit more difficult to make it in the stock market because it’s going to require a lot of thinking and data analysis. You have to educate yourself about the industry before you start trading or selling stocks. If you want to take a shortcut, you can get the services of an experienced and knowledgeable financial manager to do the trading and selling for you.

Invest in real estate

wesdfgcvhbnThe real estate industry is a very lucrative one, and you can easily make tons of money in short periods of time if you have great sales skills. There are two major ways on how you can enter this industry.

One, you can start as a real estate agent and build your name and connections before you strike on your own. Two, you can immediately start buying and selling properties. Of course, for the latter method to work, you should already have a good amount of capital before you enter the market. You are going to need hundreds of thousands of dollars to start buying and selling real estate properties.

These are the three quickest ways to become rich and successful. If you want to make it big in a short period of time, these are the industries and markets that you should enter.