Most of us have a basic understanding of what a personal loan entails. We understand that in return for a cash injection, we would have to pay back both the initial principle sum plus interest, which represents the opportunity cost and risk incurred in extending the loan to us. As such, borrowers attempt to find low interest personal loans.

Loan applications can appear to be highly vague and opaque processes to most of us. Each applicant receives different interest terms, while some are even rejected by the lender. Which brings up questions such as – why do some loan applications get rejected?