1
Low CIBIL score (below 650)
Why it happens: Most banks have a minimum CIBIL score requirement of 650–700. A low score signals past payment problems.
How to fix it: Work on improving your score: pay all dues, reduce credit card utilisation below 30%, avoid new applications for 6 months. Score can improve by 50–100 points in 6 months with consistent effort.
Why it happens: Fixed Obligation to Income Ratio: if your total EMIs (including new loan) exceed 55% of net income, banks reject the application.
How to fix it: Pay off small loans first to reduce FOIR. Add a co-applicant with income. Or apply for a smaller loan amount initially.
3
Unstable employment or low income
Why it happens: Job gaps, frequent job changes, or income below the bank's minimum threshold trigger rejection.
How to fix it: Apply after completing at least 1 year in current job. If self-employed, ensure 3 years of positive ITR before applying.
4
Incomplete or incorrect documents
Why it happens: Missing ITR, outdated bank statements, or mismatched names across documents cause delays and rejections.
How to fix it: Prepare a complete document file before applying. Use our document checklist. Guhan Capitals verifies your documents before submission.
5
Property-related issues
Why it happens: For home/LAP: unapproved construction, disputed title, property in a non-funded location, or negative technical report.
How to fix it: Get a lawyer's opinion on your property title before applying. Ensure building plan is approved by local authority.
6
Multiple recent loan applications
Why it happens: Each application creates a hard enquiry. Multiple enquiries in a short period signal desperation and lower your score.
How to fix it: Apply to maximum 2 banks at a time. Use our eligibility checkers to identify the most likely approvals before applying.
7
Business vintage or losses
Why it happens: Banks typically require 2–3 years of business operations with profitable financials. Loss-making years reduce eligibility.
How to fix it: If your business shows losses in ITR, apply through a banking turnover surrogate program, or wait for one more profitable year.
8
Area or property type restriction
Why it happens: Some banks do not fund certain pincodes, agricultural land, or specific property types.
How to fix it: A DSA like Guhan Capitals knows which banks fund your area and property type — saving you the wasted application.