Not getting a personal loan from banks? Here’s a way out through peer to peer personal loan!
The
feeling of rejection is always hard to take, be it personal or professional.
Loans are usually needed in times of desperate needs, a medical emergency or
whatever and it’s up to the traditional financial strongholds to guide people
through these perilous times. We’d love to be independent at all times in life
but sometimes it’s just too stormy to swim. These are the times we look forward
to the banks being our saviour’s but it’s hardly the case for most of us. For
salaried employees, life is too tough and to add to that, stringent and worn
out procedures are a roadblock we all could do without. Getting a Short term Loans online, for
honest, hard working individuals shouldn’t be that big a deal really, but banks
are reluctant to fund people who do not tick more than half of their
established list of criterias leaving most of us stranded. Here are a variety
of reasons for your Instant Loan application
to be rejected.
1.Salary cap not reached:
No
one loves revealing their pay scales to anyone for one reason or another. But
when it comes to applying a loan, banks demand you to reveal your pay slip and
if it isn’t more than or equal to INR 25,000, chances are your application
would be rejected barring a family relation with a bank employee. This is a
cruel filtration step which is unfair on a lot of levels.
2.Low CIBIL score:
If
you haven’t availed a loan ever in your life, you’re probably going to be
fighting a losing battle if you want one. CIBIL scores for such persons is
0/-1. CIBIL scores range from 350-900. Even a low CIBIL score would get you
nowhere as it’s obvious that you’re bad at repayments. Why would a bank invest
in such a person? You need not worry if you have a score of more than 500 as
there’s a very high probability of you getting funded.
3.Work experience:
Turns
out there’s a cap on this too. Banks usually prefer to fund individuals who
have been employed for more than 2 years and for more than 1 year with the
current employer. This gives them a general idea about how loyal the person is.
Loans aren’t provided to teenagers either no matter how much they’ve worked
before.
4.Employed in
proprietary/partnership:
A
proprietorship usually means that the proprietor is the business. There’s no
separate existence of the business from its owner and if you’re employed in
such a firm, your loan application faces an uphill task to get accepted. This
generally happens because banks also check the credibility of the company’s
owner in which the applicant works in. This involves risks such as
sustainability, turnover etc which aren’t too reliable in most cases.
Clearly,
acquiring instant personal loans from
any bank isn’t bread and butter although it should be. Apart from this, there’s
tons of paperwork involved which makes you dizzy by the day your Instant Personal Loan is
approved. Thank the Gods for peer-to-peer
lending platforms like LenDenClub. A quicker, smarter and more
innovative way of availing loans through
peer to peer sites without having to
get caught in the mundane of orthodox loan application procedures of
traditional financial institutes. First things first, everything is online.
From documentation to verification to lending and borrowing money. This has the
added advantage of digital security and authenticity. Disbursement of money
takes hardly 72 hours which is absolutely stunning and could never work for
banks for a variety of reasons. The major problem of salary cap is kept in mind
and is obviously made low enough to suit the needs of the general community.
Work experience isn’t a criteria here altogether making it an option that
freshers could choose too. But the CIBIL score requirements are the same which
is never a problem for loyal, sincere individuals who have a day job. Employees
working in proprietorship firms are not considered outcasts either which is one
of the many ways peer
to peer lending is different and interesting. As the world steps into
uncharted territories through technology and innovation, so should you!
Click to know more about peer to peer lending companies at: https://www.lendenclub.com/peer-to-peer-lending/
