If you have been trying to avail of a personal loan but have been rejected by a financial institution, there are still some things that you can do. There are some steps that you can take in order to reapply for the loan and increase the chances of your loan getting approved.

A personal loan instant approval is difficult because a personal loan is an unsecured loan. There are several criteria that financial institutions use to check how eligible you are for a loan and what your ability to repay the loan is.

• Why was the loan rejected?

The first step would be to inquire why the loan was rejected by taking the loan rejection letter from the financial institution that you applied to. Usually, this is given in about 30 days. From this, you can find out which factor caused the rejection, like an unsteady income, because you applied for a personal loan without documents, a low credit score, or a problem with the age limit.

• What is your credit score?

For unsecured loans, credit scores are important criteria. Therefore, you need to work on increasing your credit score before reapplying for the loan for personal loan instant approval.

• What is your debt to income ratio?

If your loan was rejected due to insufficient income, it might be necessary to look for loans available to people in different income brackets.

• Did you get your documentation right?

While some places offer personal loans without documents, there may be certain criteria for a particular financial institution that you may have missed out on. Thus, checking your documents and their status before reapplying is integral.

• What are your other options?

If you are having trouble meeting the criteria for a financial institution or specific lender, you may need to cast a wider net and look at options that may be in your favour.

Thus, the criteria for taking a loan are rather strict, but with a little research and effort, it may be possible to reapply for a loan and be successful in getting it approved.

Must Read: How To Select an Instant Personal Loan