• Reasons for Loan rejection otherthan Cibil

     3.5 / 5.0   by 376 users
    Used this product? Write a review >>

    CIBIL Score = 750+; Loan application = Rejected; Here’s why!

    CIBIL scores basically tell banks whether or not you’re likely to default on loan payments, based on your history with other banks in terms of loans, credit cards, EMI payments, etc. A score above 700 is considered acceptable, and anything above 750 has a safe chance of working in your favour (considering a range of 300-900).

    You plan and meticulously detail and define the amount you need to take out a loan for whatever purpose. You decide that all the finances you need are a simple loan approval away and you confidently march your loan application and highly respectable CIBIL score to the bank and submit them for consideration.

    Most banks take around 72 hours to approve loan requests and in this time you reflect on how you’ve done everything required to keep your CIBIL score high enough – working hard to make your payments on time, paying the amount promised and play it straight with your bank – never asking for extensions, reductions or settlements. You use your credit card in moderation and make your payments before they’re due. All this to get your CIBIL score up to a point that will ease the loan application process and ensure that loans are granted. Three days later, the bank performs its due diligence and informs you that your loan application has been rejected!

    So what went wrong?

    CIBIL scores, while they play a huge part in the process, are not the only thing that banks look at before sanctioning your loan. Banks and financial institutions also consider the following:

    • Comments in CIBIL reports – In addition to a numerical score, CIBIL reports also contain remarks and comments by lenders. Banks sometimes offer you the option to settle your loan for a slightly smaller amount than all of your EMIs combined, or offer interest rate reductions, etc. to help you clear your debt. If you settle your loan in any way apart from the terms on which you took the loan, there will be a remark about it in your CIBIL report and this will work against you. If there is any mention of loans being “written off” or “settled”, or amounts being paid after the due date (“DPD” = Days Past Due), banks take these as warning signs and will reject your loan.

    • Standing guarantor on a defaulted loan – A guarantor is considered to be as responsible for loan repayment (even if not in a purely literal capacity) as the borrower. If you have stood guarantor to a loan that has been defaulted, this will affect your CIBIL score and report in a negative way.

    • Defaulter details matching – Banks and financial institutions maintain lists that contain the name, age, address, current employment, and other details of individuals who have defaulted on their payments. If the details you have submitted are (even mistakenly) matched with a defaulter, you will be denied a loan before the bank even checks your CIBIL rating. There have been instances where those who have moved into houses previously occupied by defaulters and submitted that address have been matched with the “address” records of defaulters, suffocating their chances of securing a loan.

    • If you are overleveraged – You can only assign a certain amount of your declared income to clearing debts. If you earn Rs.50,000 per month, and have three other loans you’re clearing by paying Rs. 10,000 per month, each, you’re left with Rs. 20,000 for survival and personal expenditure. Banks will not approve another loan and will deem you overleveraged. Your DTI (debt-to-income) ratio will be unfavourable and you will not be able to allocate more of your income to clearing off your new loan.

    • Inadequate tax-paying history – Banks generally prefer applications from those who have been actively filing income tax for at least two years prior to the application. It is easier to judge the creditworthiness of such individuals as there is an existing record apart from CIBIL that can nudge them in the right direction.

    • Over-borrowing – If you have taken out too many loans in the previous year, regardless of whether you were able to honour them or not, banks will not approve your loan as they deem such individuals as credit hungry. Even though your record is clean, you will be considered a risky candidate who can default at any time.

    • Ratio of secured loans to unsecured loans – Secured loans are those taken against securities like assets or with a guarantor (home loans, automobile loans, etc.) and unsecured loans are taken without any security (personal loans, credit cards, etc.). A favourable ratio would be one which has more secured loans than unsecured ones.

    Anything else I should keep in mind to be viewed favourably by lenders?

    As it’s clear by now, sometimes loan applications can get rejected through no fault of your own, it is important to be diligent and actively involved in managing your finances. It’s also recommended that you check your CIBIL report once every six months to ensure that everything is as you left it.

    FAQs on Reasons for Loan rejection

    Are there any other rejections that happen by association?

    Yes, if you work in a location where a large number of your co-workers have defaulted on loan payments in the past and/or have bad credit scores, the lender will reject your application as you are associated with these people. The lender will assume that since so many of them defaulted on their debts, the company may not be stable in their monthly salary disbursements, or there may be some issue with the company as all the defaulters have only their employment details in common with each other.

    CIBIL Reviews

  • Page 1 of 19 1 2 3 4 5
    • Bank Bazaar Credit Card
      "Good Experience"
      HSBC BANK
      0.5 4.0/5 "Great!"
      The Bankbazaar team has been a good one until now. Their customer care called me properly and informed me all the details in a good manner. Their website and application is pretty user friendly. I was able to check my CIBIL score for free very easily.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Jan 05, 2018
    • Bank Bazaar Car Loan
      "GOOD"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      it was a good customer service i received form the bank bazaar end .as after i registered for the loan process the Call came within 2 days . Website of bankbazaar is really easy to use and helpful . Cibil score i checked on the bankbazaar website an it was so easy i did not even pay for it . really a great experience with bankbazaar .
      Was this review helpful? 0
      , noida
      Reviewed on Nov 30, 2017
    • Bank Bazaar Credit Card
      "Good value"
      SBI CARDS
      0.5 5.0/5 "Blown Away!"
      I have been using Bankbazaar website for over a month now and have already got a Credit Card using them. Their process is very effective, you would get a call from them for sure. Apart from this I was able to check my CIBIL score and also the EMI calculator is pretty effective.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 23, 2017
    • Bank Bazaar Personal Loan
      "User friendly app,best app for financial requirements to all"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      This is the first time, I am using this app, it is more helpful to me,with the help of this app we can take right decision regarding. I must share this to my friends as well.if we want the cibil score from bank ,they will charge us 300 rs,but with in one minute we can get our cibil score without paying any thing.Thanks to bankbazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 21, 2017
    • HDFC Bank Credit Card
      "Good card to use"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I applied a credit card with HDFC bank and they approved it and I took it from them. I used their HDFC Platinum Plus credit card from 2012 to 2013 . There are no annual fees applicable to this credit card. I couldn't apply a new credit card now because my cibil score is low and I will apply a new credit card once my cibil score is good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Experience"
      SBI CARDS
      0.5 4.5/5 "Excellent!"
      Superb application for personal financial record updation and to explore the market availability in terms of personal CIBIL score. Happy to be a part of Bankbazaar customer.Thanks and stay in touch and keep contacting for future. Enjoyed
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 17, 2017
    • Bank Bazaar Car Loan
      "Better service"
      ICICI BANK
      0.5 4.0/5 "Great!"
      It was a great experience I got with bank bazaar in regards to my car loan application. I got to know about my cibil score, without any charges. The customer support is prompt with bank bazaar. I know bank bazaar for more than 4 years. I used bank bazaar website which is easy to use and customer friendly.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Nov 17, 2017
    • Citibank Personal Loan
      "Needs to improve"
      CITIBANK
      0.5 3.0/5 "Satisfactory"
      I have applied for the personal loan from Citi bank, my loan application was closed because there was an issue with my CIBIL score. When it comes to customer service, they just called once and there was no further follow up done, they did not respond. The rate of interest was nominal when compared to other banks.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 17, 2017
    • Kotak Personal Loan
      "Good service"
      KOTAK MAHINDRA BANK
      0.5 5.0/5 "Blown Away!"
      I have applied for the personal loan from Kotak Mahindra Bank, my loan application was closed because i had an issue with my CIBIL score. The customer service was good and they responded on time, there was no issue from the bank side and they followed up regularly. The rate of interest was high when compared to others in market.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 16, 2017
    • Bank Bazaar Personal Loan
      "OK OK EXPERIENCE"
      FULLERTON
      0.5 3.0/5 "Satisfactory"
      It was a OK OK experience with Bank Bazaar i received while i applied for the personal loan . The website is helpful and user friendly as i am first time user . I checked the cibil score on the website without paying any fees that is so cool . The call came from the bank bazaar executive once after I registered for the loan process also their customer service is cool only.
      Was this review helpful? 0
      , goa
      Reviewed on Nov 15, 2017
    • ICICI Bank Personal Loan
      "Below Average service"
      ICICI BANK
      0.5 2.0/5 "Expected more"
      ICICI bank executives told that my cibil score is low but I know that I have enough cibil score to go with the personal loan and I got the personal loan from other bank. The customer support haven't gave any response in regards to my personal loan application.The response need to be improved with ICICI bank.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Nov 15, 2017
    • Bank Bazaar Personal Loan
      "Good service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I got a promotional mail from bank bazaar and that's how I came to know about bank bazaar.com. I have applied personal loan via the promotional mail. The website is easy to use and customer friendly. It is also helpful to check the cibil score.
      Was this review helpful? 0
      , rajahmundry
      Reviewed on Nov 15, 2017
    • RBL Bank Credit Card
      "FRAUDULENT BANK...PATHETIC SERVICE"
      RATNAKAR BANK
      0.5 0.5/5 "Unacceptable"
      Not providing NOC for account which I asked to close a year ago on 13nov2016 I am a happy customer of Citibank and SBI Cards. Previous year i fell in the trap of RBL.They kept on calling whole day for a mere amount of Rs. 400+ so I cleared the balance and asked me to close my service through call and mail on 13Nov2016. They blocked my account and on 15oct2017 when I tried to get a car loan... my CIBIL score was low due to this bank which says I have not paid their balance. So I went through their customer care. They apologized and said they will clear all charges and will provide me NOC so that I can get a loan but no response from their side. My loan was stuck so I was on the phone and after an hour or more i got Mr. Ravi Shukla (Supervisor) on the call and he promised me that everything will be done within three working days. Three working days all are over. I got a NOC and I was called by the ''adament'' supervisor.He tried to blame me for the whole situation.
      Was this review helpful? 1
      , new delhi
      Reviewed on Nov 13, 2017
    • Bank Bazaar Personal Loan
      "Lots of advantages"
      KOTAK MAHINDRA BANK
      0.5 5.0/5 "Blown Away!"
      Bankbazaar has so many advantages. The whole application is pretty neat and easy to use. I could see my CIBIL score and also applied for both my Credit Card and Loan. The concept of the whole idea of comparing various Bank in a single page is pretty novel.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 01, 2017
    • Bank Bazaar Personal Loan
      "Very Very good"
      HDFC BANK
      0.5 4.5/5 "Excellent!"
      As i am hope less that no bank is giving me loan because of low cibil score but you consider my application and gave me hope that i pay back my debt. feeling very helpful dont know about the result but who ever is giving you the hope is a farista thanks
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 26, 2017
    • Bank Bazaar Car Loan
      "Excellent service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have been using the website for last one year they give prompt information pertaining to loan offer or card offers.They sound helpful and willingness to give the right offer as per the need.website gives multiple information especially the cibil score.
      Was this review helpful? 0
      , mumbai
      Reviewed on Oct 24, 2017
    • Bank Bazaar Car Loan
      "Better options"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      I am user of bank bazaar for last few months. I liked the website so much it has got required information pertaining to loan,cibil score etc.I get an immediate response from them,continue to be the same.keep up the good work and all the best for the future projects.
      Was this review helpful? 0
      , pune
      Reviewed on Oct 23, 2017
    • Bank Bazaar Car Loan
      "Good website"
      CAPITAL FIRST
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 6 months, the services provided by bankbazaar is good when compared to all other banking websites. The customer service is good and prompt. I am using mobile application, it is easy to access and it is user friendly. I also check my CIBIL score in the mobile app.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 21, 2017
    • HDFC Bank Saving Account
      "Average service"
      HDFC BANK
      0.5 1.0/5 "Really Bad"
      I am holding HDFC savings account from last 10 years, i had a good experience with HDFC bank. The banking services are also good, the only problem i had is they are not giving any loans from last 10 years because my CIBIL score is less. I use HDFC net banking for all the services i require. I also do online transfers through NEFT and there are no additional charges.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 21, 2017
    • Capital First Car Loan
      "Good customer service"
      CAPITAL FIRST
      0.5 4.0/5 "Great!"
      I have applied for the car loan from Capital First, my loan application was rejected because my CIBIL score was less. When it comes to customer service, it was good and they responded well. The rate of interest is little high when compared to all other sources.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 21, 2017
    Common Loader Icon
    Page 1 of 19 1 2 3 4 5
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.