Did you plan to buy a car, and your car loan application was rejected? There are multiple reasons for your car loan to be rejected. Read on to know more.

Possible reasons for rejection:

No Credit History:

A customer with no credit history at all stands no chance in getting their auto loan approved.

Poor Credit History:

If a customer has not repaid the debt of his previous loan which led to a poor credit score, that can put the car loan process to a halt.

Incorrect Data:

When a customer enters his personal and financial information, it has to be accurate. Incorrect information will lead to denial of your car loan.

Income Position:

In a scenario where you've just started a job or you are on a probation period with the company, your position and timing for the loan application is not appropriate and will be a reason for your car loan denial.

Parallel Loans:

If a customer has multiple loans while applying for a car loan and the income is less than the monthly loan amount, that’s another reason for the rejection of an auto loan.

What to do when reapplying?

Once you have the reason figured out for your auto loan rejection or not, pause, before reapplying. Make sure you have all your essential information and documents in one place. Read below to take care of things before reapplying.

Down Payment

A very important element to consider while reapplying is the down payment. Ask the following questions: what is the percentage of your car's cost the bank is ready to give you as your car loan? Is the amount enough in order to make your dream purchase comfortably? Are they making you pay a huge down payment?

Calculations

Once you have decided on the amount and tenure, it's time for you to now calculate your EMI. Doing so will reduce the chances of your loan rejection. Calculating the monthly installment of your auto loan can help you in choosing the right scheme, one that suits your needs, repayment capacity and financial position.

Co-signer

A co-signer acts as a partner for your auto loan application process. In this scenario, you still take the total responsibility of the payments, however your co-signer will enter the picture if you can't. Both your and your co-signer's credit history will matter while considering the approval of your loan, thus increasing the chances of approval.

Compare Options

While looking for your next car finance company, make sure you weigh your options wisely. You have a wide range of auto finance with different processing fees, EMIs interest rates, processing TAT, eligibility criteria and you need to choose one company to go with. Make a smart choice that offers you a balance of all the important factors aforementioned. You can also get instant loan approval with accurate loan value digitally with Kuwy.

Automotive Instant lending

In a world that’s going digital, Kuwy is the India’s leading automotive fintech platform with a trusted Automotive Dealer/Lender Network that offers on-demand transactions by making automotive credit accessible, paperless & instant for everyone. If you wish to avail loan digitally, Kuwy can be your call.

All in all, you need simplified auto loans, and the best Automotive lenders with good quality customer support. Get that and much more at www.kuwy.in