Your FAQs on Personal Loan for Self Employed

Personal Loans

1- What can be the Reasons of Personal Loan Rejection Offered for Self Employed?

There are a number of reasons for which a personal loan could be rejected. One of the Reasons For Personal Loan Rejection is poor credit score. Few of them are listed here:

  • The prospective borrower might have a very poor credit history. A good credit score is required to secure the loan, with no skipped payments on bills or overdue credit cards.
  • There should be no errors at all in the credit report like payments being wrongly reported, false reports of payments, late payments or providing incorrect credit score.
  • If one already has too many loans it means the borrower already has a number of liabilities and this means a fresh loan could be rejected.
  • A lot of stress is laid on the job stability of the loan applicant because the creditors want to see that the borrower has a steady income with which to repay the loan. If there is no steady income, a higher loan amount would be rejected.
  • If you are already a loan guarantor to someone, your own loan could be rejected because that would increase the liability.
  • If your residential address is blacklisted or if there is some criminal record of the borrower, then the loan might be rejected.
  • Low CIBIL score is one of the most common reasons which may result in your loan request rejection. It will be okay if you have 0 CIBIL score, but always remember it will not be considered a positive sign if you have low CIBIL score or a credit score less than 700.

2- While transferring my personal loan for Self  Employed from one bank to another will I be charged for pro closure fee?

If it has been more than six months you availing a loan, no any pre-closure fee for transferring personal loan from one bank to another will be charged.

It also depended upon bank to bank, so while transferring your availed personal loan for self employed, you should consult with the bank once. The reason behind it is that, however your loan has been closed before due date with the bank you applied for a loan, still there will be liability with another.

After then the rules of your loan pre-closure will be depends upon the bank you have chosen to transfer your loan balance. While transferring your loan from one to another bank, it does not really will be considered as pre-closing the loan but will be considered as opting for balance transfer.

Pre-closure is the thing which will be in effect when the loan will be paid back before the tenure is over. Many debtors step out for this option just because they find any other bank who can provide them lower rates of interest to repay the loan. Although, the fee for this Personal Loan for self employed will subsequently be applied according to the bank who is transferring the loan. All the time it will be best to go for detailed enquiry with the bank as the discussed thing may change if the rules and regulations get changed by banks.