Avail Personal Loan

Is It Possible To Avail Personal Loan After Getting Rejected More Than Once


A personal loan application may get rejected by the concerned bank and financial institution in case of non-fulfilment of one or more personal loan eligibility criteria. In such cases, going for another lender is the option. However, a pertinent question is whether it is still possible for the applicant to avail of a personal loan after getting rejected more than once?

There is not a sure-shot answer to this question as it is subjective. The answer varies depending on the case; however, the following points can help you determine whether you can still avail of a personal loan after getting rejected.

Identify the reasons for rejection.

This is the foremost task to do when your personal loan gets rejected. The following could be the prime reasons for rejection:

  • Low CIBIL score
  • Unsatisfactory income level
  • Insufficient documentation
  • Furnishing inaccurate information

The reason for rejection will give you a brief idea of whether it’s worth it to apply for a loan with another financial institution. If the reason points towards failure to meet eligibility criteria, you can always go for another bank or financial institution with relaxed eligibility criteria. Let’s deep dive into these reasons to know whether availing of a personal loan is possible after rejection:

  • Low CIBIL Score

Normally, banks require a CIBIL score of at least 750 to sanction the loan. Banks may sanction a lower CIBIL score up to a specific limit against a higher interest rate and other charges. If you have a low CIBIL score, you may have difficulty getting a personal loan. Going for NBFCs is an option, but the interest rate and other charges will be higher. If you can bring a co-applicant, then it might help you get your personal loan sanctioned.

  • Unsatisfactory Income Level
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If your loan is rejected due to unsatisfactory income, then you still stand a chance to get your loan sanctioned with another financial institution. You can do either of the following while reapplying for a personal loan with another lender:

  • Either reduce the amount that you are willing to borrow or
  • Introduce a co-applicant in your personal


  • Insufficient Documentation

Each financial institution has its requirement of documents. However, the essential documents are still the same, like identity proofs, residence and income proofs with bank statements, etc. If you have furnished insufficient documents, you can switch lenders with relaxed criteria concerning the missing documents. However, strive to keep and maintain the essential documents handy otherwise, you may end up paying higher interest rates.

  • Furnishing inaccurate information

If you have furnished inaccurate information, try rectifying it with the same institution by requesting to reopen the case. If the lender is unwilling to reconsider your loan request, you can go for another lender. Make sure to furnish the correct particulars this time.

Points of Caution

It’s always better to preplan your loan using a personal loan EMI calculator. You just need to enter the loan amount, personal loan interest rate, and tenure to get the exact amount of EMI. This will help you avoid skipping EMIs and make timely repayments. Apart from this, remember the following points if your loan application is rejected:

  • All the branches of the bank are connected through CBS. Therefore, once your loan gets rejected, going for another branch of the same bank will not help you in any way. Try another bank.
  • Do not make multiple personal loan applications and hard inquiries; otherwise, it will adversely affect your CIBIL score.
  • Introducing co-applicants in case of failure to meet eligibility criteria is one of the most effective ways to increase the chances of getting your loan sanctioned.
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