Each lender decides applications under its own credit policy, so the same application can be accepted by one lender and declined by another. The reasons below are common ones; only the lender can tell you why your application was declined.
Last reviewed on 19 October 2026.
Common reasons
- Existing EMIs already take a large share of income, above the lender's limit (often called FOIR).
- Late or missed payments, defaults, settlements or write-offs in the credit report.
- Errors in the credit report.
- Little or no credit history.
- Several applications for credit in a short time.
- Income, job type, employer or length of employment outside the lender's policy.
- Missing documents, or details that do not match (for example name or date of birth on different documents).
- Age, or a tenure that would run past the lender's age limit.
What to do next
- Ask the lender for the reason.
- Get your free credit reports and check them for errors.
- Work out your debt-to-income ratio and see whether reducing existing debt first would help.
- Consider a smaller amount, a co-applicant where the lender allows one, or a longer tenure (which lowers the EMI but raises the total interest).
- Prepare complete, consistent documents before applying again, and avoid applying to many lenders at once.
Important limitations
- Lenders' credit policies are their own and are not published in full.
- This guide is general information. It does not promise any change in your credit score, an approval or a particular result.
Official resources
- RBI – list of Credit Information Companies (opens in a new tab)The credit information companies registered with the Reserve Bank of India.As on 18 August 2026 the list named CRIF Credit Information Services, Equifax Credit Information Services, Experian Credit Information Company of India and TransUnion CIBIL.
Addresses checked on 19 October 2026.
Related
- Loan affordability and personal loan readiness calculatorSee the EMI of a loan you are considering and what it would do to your monthly debt burden and the money left over.
- Debt-to-income ratio calculatorAdd up your monthly loan EMIs and other debt payments and see what share of your income they take.
- Credit and personal loan application readiness checklistQuestions to answer before you apply for a loan or credit card.
- Credit application document checklistDocuments lenders commonly ask for. Each lender has its own list; ask for it before you apply.
- How to get and read your credit reportGetting your free annual report from each credit information company, and what each part of the report means.
- Secured and unsecured credit: the differenceWhat security means for a loan, examples of each kind, and what to weigh when choosing.