Outlook Money
A CIBIL score of 750 or above reflects strong financial discipline. However, lenders consider multiple factors before approving a loan, and a high score alone does not guarantee approval.
Even with an excellent credit score, factors like unstable income, a high debt load, or multiple recent loan applications can affect approval. Understanding these helps in improving your chances.
Lenders look for consistent earnings to ensure timely repayment. Irregular income, frequent job changes, or fluctuating business revenue can make lenders cautious about offering credit.
If your monthly obligations are too high compared to your income, lenders see it as a risk. Most prefer a debt-to-income ratio below 40 percent to approve a loan.
Submitting several loan or credit card applications in a short time signals high credit demand. This can make lenders hesitant, as it increases the perceived risk of default.
Errors on your credit report, such as outdated information or incorrect balances, may negatively impact approval. Regularly reviewing and correcting your report is essential.
Banks require accurate and complete documents for identity, income, and liabilities. Missing salary slips, wrong addresses, or mismatched signatures can delay or block loan approval.
Maintain steady income and limit multiple loan applications. Keep your debts manageable and ensure all documents are correct to increase your chances of approval.