Why do banks reject loan applications?

Applying for a loan includes more research, making decision and keeping the necessary documents prepared. Being prepared not only saves time but also save efforts. Many a times you are not aware of the several formalities and documentation process included throughout the loan application. Apart from being ready for the loan, this is also vital to know why do banks reject loan applications. When you apply for a loan, two major checks the lenders make are the credit score and credit history and your income. If either of these does not complete the minimum needs of the lender, then the loan application would not go ahead. Apart from this, lenders would also look for steady employment and income records. Factors, like nationality, age, and even educational qualification can also have an implication on loan sanction. Inaccuracies in you application, particularly in age, name, address and more, makes it tough for the bank to generate the essential details about you and can cause the loan application rejected.