How to get a loan if my company is not listed or recognised by the lender?

Ever found a great deal on a personal loan only to realise mid-application that your employer is not on the lender's list? While this can feel like a dead end, the good news is that an unlisted company doesn't equate to a rejected application. 
Lenders look at a lot more parameters than your place of employment. The icing on the cake is that, for the most part, you have direct control over many of them. This blog will tell you how you can still get a loan even if your company is not recognised by the lender in your application. 
 

Why Do Lenders Recognise And Only List Specific Companies?

The answer to the above question is simple: it's how lenders measure risk. Stable companies pay salaries on time and have a proven track record of doing so. This gives lenders some reassurance that, as long as someone is employed there, they should be able to repay the loan consistently. 
There are several reasons why your company isn't on a lender's curated list. The most common ones include:
●    Your company has a limited credit history.
●    They have not yet been onboarded into their internal database.
●    The company doesn't belong to the preferred mainstream sectors.
That said, your employer's name missing from the list doesn’t automatically mean a “no” from a lender's perspective. It simply means that they will now focus on things like your income, credit score, and your track record with payments. 

Things In Your Control That Will Help Strengthen Your Loan Application
 

As mentioned earlier, you can actively work on improving your chances of approval by focusing on the following aspects of your profile:
●    Show consistent income: Keep bank statements and salary slips ready that show at least 6 months of timely salary credits.
●    Maintain a good credit score: A credit score above 700 is great. Above 750 is even better. It's a mark of your creditworthiness. 
●    Reduce your debt-to-income ratio: If a large part of your income is already tied up in EMIs, lenders will see this as a red flag. Clearing smaller debts before applying can work in your favour. Make sure that not more than 40% of your income is tied up in debts. 
●    Consider adding a co-applicant or guarantor: If your credit score is poor, consider adding a co-applicant to your application with a stable income and good credit history to improve your chances of approval. 
Pro Tip: Applying via digital channels like for example, Hero FinCorp’s Instant Loan App, will help you do a quick eligibility check and help you apply for a personal loan without even having to visit a branch. 

Take The Next Step With Confidence

An unlisted employer is never the end of the road. As long as your income is stable, you consistently repay all your debts on time and borrow smartly, you will almost always be able to secure the funds you need. As far as a lender is concerned, your commitment to financial discipline matters more than where you work. 
If you’re ready to see where you stand, check your personal loan eligibility on Hero FinCorp’s website in just a few steps. You can also do the same via their digital lending apps on Android and IOS apps, too.

Frequently Asked Questions

Can I apply for a personal loan if I just joined a new company?

Yes, you can apply for a personal loan even if you have joined a new company. Lenders may ask for additional information to ensure that you have been receiving a consistent income in your previous role as well. 

Is self-declared income accepted by lenders?

Some lenders do accept self-declared income if you have sufficient documentation like tax returns or audited financial statements. That said, verified income proofs like salary slips almost always carry more weight.

How often can I check my credit score without affecting it?

You can check your credit score as often as you like. When you do it, it's referred to as a "soft inquiry". Temporary dips occur only when a "hard inquiry" is performed either as part of a loan or a credit card application.

Can my loan application be rejected only on the grounds of a high debt-to-income ratio?

Lenders generally evaluate your profile as a whole. That said, a high debt-to-income ratio is always seen as a red flag, and improving this statistic will help with your loan approval. 

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented Here is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.