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I Was Rejected For My First Ever Loan Application, Why?

Ask CreditSmart: I'm Having Problems With The CIBIL Website

Loan Rejections Happen For Many Reasons

We receive so many questions here at CreditSmart, and today’s question from Farook is one of the most common ones we get, so we are sure many of you can relate:


Dear CreditSmart,

Recently I applied for personal loan and it was rejected due to some reason. I never took a loan in my life.

Need your assistance. Looking forward to hear from you!!


Let Us Take A Look

Hi Farook! Sorry you were rejected, it’s always discouraging to get a “no” when applying for a loan or credit card. The first thing you should know is just because it’s your first loan application does not necessarily mean you are more likely to get approved. Questions like this are unfortunately impossible to answer with 100% certainty as to the reason.

What we can do is outline some of the most common reasons, then you can narrow it down depending on your situation. Banks determine your loan eligibility on many factors including your income, job stability, current financial obligations, credit utilization, and credit score.

If your income is steady and your other finances are in order (credit cards, auto loans), then it must be something else. As always, in cases where there is lots of uncertainty about the rejection, it’s in your best interest to purchase your full CIBIL report directly from CIBIL

It’s a small investment that will help you immensely in pinpointing the reason for your rejection. Short credit history, being financially overextended, applying for too much money relative to your income….or even errors on your report. It could really be any one of these reasons.

It’s also possible the bank will share the reason with you simply by asking, so that is another route to take.

Credit is complicated, but I’m sure you’ll be ble to identify the issue after a look at your CIBIL report. Best of luck to you Farook, and thank you for the email.

If any of you have a credit question just send it to us at and we’ll do our best to get back to you very soon!



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