Why Your Personal Loan Got Rejected (And How to Fix It)

By Admin | Jan 30, 2026

There is nothing more frustrating than needing urgent funds and seeing "Application Rejected."

Most people make a common mistake: they apply to 10 different banks at once. This reduces your CIBIL score because every bank does a "Hard Inquiry" on your profile.

The Hidden Factor: FOIR

Banks use a secret formula called FOIR (Fixed Obligation to Income Ratio). Simply put, they check how much of your salary already goes into existing EMIs.

If more than 50% to 60% of your salary goes to EMIs, banks will consider you "High Risk" and reject you, even if your CIBIL is 750+.

The Smart Way to Apply

Before you submit an official application to a bank, you should do a "Soft Check." This involves calculating your eligibility based on your salary and current EMIs without triggering a CIBIL inquiry.

3 Tips for Guaranteed Approval

1. Close Small Loans: Clear any small consumer durable loans (like mobile phone loans) to free up your FOIR.
2. Add a Co-Applicant: Adding a spouse with an income increases your eligibility.
3. Check Your Report: Ensure there are no errors in your credit report before applying.