Have you ever applied for a personal loan and it got rejected? Check out below the reasons why banks reject your loan application and how to avoid it in the future.

6 Reasons Why Banks Reject Your Personal Loan Application

Employment Status

It is very important for the bank to check your employment status and how stable it is. If you have an unstable history in your work journey then there are higher chances that your loan might be rejected.

Listed Approved Company

Banks check if the company you work with is listed and approved. This is to check if your company is stable and you have a stable income every month. And if your company is listed, it is much easier for you to get your personal loan approved.

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Minimum Salary Required

There is a minimum salary requirement that will have an impact on your eligibility to avail personal loan and the amount of the loan as well.

Debt Burden Ratio

Debt burden ratio is the impact of debts on your income or the cost of debt that you need to pay from your salary. According to the UAE central bank, your loan will be rejected if your DBR comes more than 50% of your salary.

Credit Score

Nowadays, loan providers can acquire your credit report from Al Etihad Credit Bureau and find out your DBR as well as if you have ever failed to make any payment and how many credit cards you have. The credit score is a three-digit score given to every individual. In UAE the credit score is evaluated between 300-900, the higher the score, the more likely you will get the loan.


Age plays a role in your loan application process. The eligible age for a personal loan is 21 years, and the maximum is 65 years at maturity. If your age is not in the range, then your loan application would get rejected.

How to avoid getting your loan rejected?

  • Try to apply for banks which have your company listed with them
  • Be clear about all the requirements and the details needed
  • Provide all the required information and verify them before submission
  • Get a credit report from Al Etihad Bureau for AED 100 to know your credit score before you apply
  • Clear all possible debts before applying
  • Get all the documentation and requirements needed by the bank and submit all in one hand
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