Behind every loan approval or denial is a very complex mathematical calculation of the probability that the loan will be repaid. Every lender has its own scoring tools that assess several factors that reflect the repayment capacity of the borrower.
The following reasons could have contributed to loan rejection:
Employment Status - lenders look at your employment status to know how stable you are to repay. If your employment has some ups and downs, then that could be the source of your rejection.
Debt burden ratio - lenders may deny you a loan if you have a substantial debt burden. You don't qualify for a credit if your debt to income ratio is more than 43% of your salary.
Credit score - maybe you have a poor credit score. A bad credit score could be caused by defaulted loans or late payments.
Age - the standard eligible age for personal loan qualification is 21 to 65 years. You may not get a loan if your age is outside the age bracket.
False Information - lying on a loan application is a serious reason why a lender might reject your loan application.