Applying for a loan is already stressful, and getting rejected makes it worse. At Ashwini Finance, we’ve seen many people walk in confused about why their loan was rejected elsewhere. So we decided to put together a simple explanation of the most common reasons and how you can avoid them.
This is based on what we see every day while helping customers secure the right loan.
1. Low or Weak Credit Score
Your credit score tells lenders how responsibly you’ve handled money. If it’s low, approval becomes difficult.
How to avoid:
- Pay EMIs and bills on time
- Keep credit card usage under control
- Check your credit report regularly
2. Too Many Existing EMIs
If most of your salary already goes into repaying loans, lenders may feel you’re financially stretched.
How to avoid:
- Close smaller loans first
- Improve your debt-to-income ratio
- Avoid taking unnecessary credit
3. Income Mismatch in Documents
This is more common than people realise. If your claimed income doesn’t match your payslips, bank statements, or ITR, lenders reject the application.
How to avoid:
- Keep all financial documents updated
- Make sure your income reflects clearly in statements
- Self-employed? File ITR regularly
4. Frequent Job or Business Changes
Lenders prefer stability. Too many job switches or unstable business income can be a red flag.
How to avoid:
- Apply after spending some stable time in your job
- For business owners: maintain steady deposits for a few months
5. Mistakes in the Application
Even a small error , like a wrong PAN digit or mismatched address can lead to rejection.
How to avoid:
- Double-check every detail
- Ensure KYC documents match your application
Final Thoughts
A loan rejection doesn’t mean you’re financially unfit, it just means something needs to be corrected or improved. With a little preparation, most of these issues are easy to fix.
And if you need guidance, Ashwini Finance is always here to help.
We specialise in secure, fast, and transparent lending. Whether you’re applying for the first time or trying again after a rejection, our team helps you understand eligibility, organize documents, and get the best possible approval chance.
Your goals matter. We’re here to support them the right way.