Are you facing loan rejections even though you have a stable income? You’re not alone. Many people find themselves confused when their loan applications are turned down without a clear explanation.
At Shivafinz, we believe in empowering you with the right financial knowledge. Here are the three most critical parameters that banks and NBFCs consider before approving your loan — and how you can meet them.
1. Maintain a Healthy CIBIL Score (720+)
Your CIBIL score plays a huge role in whether your loan gets approved or not. It is a three-digit number that reflects your creditworthiness. Banks and NBFCs typically look for a CIBIL score of 720 or above to consider you as a low-risk borrower.
🔍 Tip: Pay your EMIs and credit card bills on time, avoid late payments, and reduce your outstanding debt to maintain a good credit score.
💸 2. Watch Your Debt-to-Income (DTI) Ratio
The debt-to-income ratio shows how much of your monthly income goes towards repaying existing loans.
📊 Ideal DTI Ratio: 36% to 40%
Let’s say your monthly income is ₹1,00,000. Your total EMIs should ideally be between ₹36,000 to ₹40,000. If your EMIs go beyond this range, lenders may see you as over-leveraged and reject your loan application.
💡 Smart Tip: Pay off smaller loans before applying for a bigger one. This will improve your DTI ratio.
🚫 3. Avoid Multiple Loan Enquiries in 30 Days
This is a common mistake many borrowers make. When you apply for a loan with multiple lenders in a short span — especially within 30 days — it sends a red flag to banks and NBFCs.
Each enquiry lowers your credit score slightly, and frequent checks can make you appear credit-hungry.
❗ Avoid this by consulting professionals who can guide you to the right lender based on your profile — like the experts at Shivafinz.
📌 Final Thoughts
Getting your loan approved is not just about income. It’s about credit health, responsible borrowing, and smart financial habits.
Here’s a quick checklist before applying for any loan:
- CIBIL score is above 720
- DTI ratio is within 36–40%
- No multiple loan applications in the last 30 days
Need help with loan structuring, eligibility, or understanding the best financing options for your needs?
👉 Connect with Shivafinz — your trusted loan consultant.
🔎 Frequently Asked Questions (FAQs)
🔹 What is the minimum CIBIL score for a personal loan?
Most banks and NBFCs require a minimum of 720 for a smooth loan approval process.
🔹 Can I get a loan if I have too many existing EMIs?
Only if your DTI ratio is within limits. If it’s too high, reduce your debt first.
🔹 How can I improve my chances of approval?
Improve your CIBIL score, reduce existing debts, and avoid applying for multiple loans at once.
📞 Need Professional Loan Guidance?
At Shivafinz, we offer expert assistance in getting personal loans, business loans, home loans, and more — with higher chances of approval.
👉 DM us, call now, or visit [staging.shivafinz.com/] to book a free consultation.