A personal loan is an unsecured, flexible loan that can be denied for a variety of reasons. Multiple personal loan rejections might lead to a spike in hard inquiries, which can reduce your credit score. If you make a lot of hard queries, lenders may think you’re a high-risk borrower. If you were rejected for an ICICI Personal Loan, you may want to look into the reasons for the decision. Continue reading to understand more about the reasons behind ICICI Bank’s rejection of personal loans.
With cheap processing costs and attractive interest rates, ICICI Bank offers affordable personal loans for short-term needs such as weddings, medical treatment, schooling, vacations, and house renovations, among others. People with a range of employment can qualify for an ICICI Bank personal loan because the monthly income criteria is relatively low.
List of Reasons for ICICI Personal Loan Rejection
There are six causes for a personal loan denial, but they change from one lender to the next because each has its own internal technique for establishing creditworthiness and risk assessment. The most common reasons for ICICI Personal loan rejection are as follows:
1. Job Security
Frequent employment changes give the lender the impression that you are untrustworthy of your employer. It may be tough to receive a personal loan with such an attitude, as it is an unsecured loan that does not demand collateral. ICICI Bank requires its borrowers to have worked for at least two years and, more importantly, for the same employer for the prior year.
2. Low CIBIL Score
A high CIBIL score suggests that you are financially prudent. It is a crucial aspect in establishing a borrower’s creditworthiness, according to lenders. On the other hand if you have a low CIBIL score, your personal loan application will be denied. This could have been a big factor in your ICICI Bank personal loan application getting denied.
3. A Blacklisted Private Company’s Employee
Only doctors, chartered accountants, employees of private limited companies, and employees of public sector organisations, including central, state, and district organisations, are eligible for ICICI Bank personal loans with the lowest interest rates. Your personal loan application will very definitely be declined if you do not fall into this category. Your personal loan application may be declined even if you work for a private company. This could happen if the company you work for is on the bank’s list of blacklisted businesses.
4. Low Income Levels
You can repay your personal loan if you have a steady source of income. Each bank establishes a minimum monthly or annual income requirement to qualify for a personal loan. ICICI Bank, on the other hand, has established a net monthly income of INR 17,500 as the minimal requirement. However, not all cities have the same income restriction. Mumbai and Delhi applicants should expect to earn INR 25,000, whereas Chennai, Hyderabad, Bangalore, Pune, and Kolkata applicants should expect to earn INR 20,000. If you do not meet this minimum income requirement, your ICICI Bank personal loan application may be denied.
5. Age Limit
To be eligible for a personal loan, you must be between the ages of 23 and 58. If you do not fit within this age group, your ICICI Bank personal loan application will be refused. To ensure that you will be able to repay the loan without difficulty, the bank sets an age limit.
6. Too Many Applications at the Same Time
Another factor that could lead to a personal loan denial is submitting too many loan applications, which gives the impression to the lender that you are credit-hungry and could be a risky applicant.
These are some of the most typical reasons for an ICICI personal loan application being denied. However, in order to avoid rejection, it is essential that you conduct thorough research on the loan before applying.
