What you need to know
Most rejections come from a low credit score, too many existing EMIs or income the bank cannot verify. Fix the cause before reapplying — repeated applications add hard enquiries and can lower your score further.
Reasons and fixes
| Reason | What to do |
|---|---|
| Low credit score or recent defaults | Clear overdues, wait a few months of clean repayment, dispute report errors |
| High FOIR (too many EMIs) | Close small loans, add a co-applicant or raise the down payment |
| Income below bank minimum | Choose a bank with a lower threshold or add a co-applicant |
| Unstable job or new business | Wait for more vintage or apply with your salary bank |
| Many recent loan enquiries | Pause applications; apply to one or two lenders only |
| Document mismatch | Match names, addresses and PAN across documents |
| Age at maturity beyond limit | Shorten tenure or add a younger co-applicant |
| Car not eligible (used cars) | Check car-age limits and valuation rules |
Frequently asked questions
Does a rejection hurt my credit score?
The rejection is not reported, but the hard enquiry is; several enquiries close together can lower your score.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.