Why loan applications get rejected — and how to fix each cause
Nine recurring reasons behind rejection, ranked by how often we see them.
6 min read
What you need to know
Rejection is rarely mysterious. In most files it comes down to one of a handful of measurable issues, and almost all of them can be corrected before a second application.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Key points and practical checks
- Credit score below the lender's cut-off
- FOIR too high — existing EMIs eating more than 50-55% of income
- Job or business vintage below the minimum
- Cash salary or income that does not reflect in the bank statement
- Cheque bounces or inward returns in the last six months
- Address or employer on a lender's negative list
- Multiple recent hard enquiries
- Property title defects or unapproved construction
- Mismatch between ITR income and the income declared on the form
Frequently asked questions
What is the main takeaway from “Why loan applications get rejected — and how to fix each cause”?
Nine recurring reasons behind rejection, ranked by how often we see them.
What should I check before acting on this loan basics guide?
Start with these checks: Credit score below the lender's cut-off; FOIR too high — existing EMIs eating more than 50-55% of income; Job or business vintage below the minimum. Your final eligibility, pricing and approval still depend on the lender’s assessment.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.