A rejection letter says the application does not meet internal criteria. That is not an explanation, and it leaves people reapplying elsewhere with the same file — which makes the next answer worse, because every application is recorded.
The nine usual reasons
1. Credit score below the cut-off. Most unsecured lending needs 700+. The score is a summary though — a settled account at 720 can be declined where a clean 690 is approved.
2. A settled or written-off account. This does more damage than a low score, and it sits on the report for years. Converting it to “closed” by paying the balance, with written confirmation, is the single highest-value fix available.
3. Too many recent enquiries. Five applications in a month reads as distress. Lenders see the enquiries even when they cannot see the outcomes.
4. FOIR already stretched. If existing EMIs eat more than half your income, the new EMI has nowhere to sit. Clearing one small consumer loan often fixes a file entirely.
5. Employer not on the lender’s list. Banks grade employers. An unlisted proprietorship gets a different answer from the same salary at a listed company.
6. Insufficient job or business stability. Less than six months in the current job, or under two years in business, fails most policies regardless of income.
7. Address or documentation mismatch. A name spelled differently on PAN and Aadhaar, or an expired address proof, gets a file returned rather than assessed.
8. Cash-heavy or irregular banking. Frequent round-figure cash deposits and lumpy credits make income unverifiable, even when it is real.
9. Property or security issues. On secured loans the applicant can be perfect and the title, approvals or valuation still stop the file.
What to do instead of reapplying
Pull your credit report and read it — errors are more common than people assume, and disputing one is free. Fix what is fixable, wait out the enquiry cluster, and then apply once, to the lender whose criteria your file actually meets.
That last part is most of what we do. Send us the file and the rejection, and we will tell you which of the nine it was — start here.
Send us your details and an advisor calls back within 24 working hours — no obligation.
