High CIBIL Score Loan Rejection Reasons: If your CIBIL score is 800 and still your personal loan or credit card application has been rejected, you are not alone. Many people assume that if the score is high then they will definitely get the loan, but the reality is quite different from this. Credit score just opens the door, not allows entry. It depends on many things. In this article, know why loan approval can be rejected due to high CIBIL score, real conditions of the bank, hidden factors and practical ways to increase approval...

Why does loan get rejected on CIBIL score of 800?

1. How stable is the job?

Banks do not just look at your old loan, they also look at your ability to pay further EMIs. Things that banks look at closely include frequent job changes, being in probation period, trend of changing jobs every 3-6 months, gap in employment, working in a company with less information or an unstable company. For salaried people, a stable job of 2-3 years is considered the strongest point.

2. What to do if you are self-employed

If you do your own work, banks look at ITR of last 2-3 years, business stability, year-on-year growth or decline, cash flow and profile. Even a slight decline or late ITR can hold up the application.

Loan approval can also stop EMI load

Having a high CIBIL score does not prove that you will be able to handle a new loan. Banks consider a thumb rule that the total EMI should be 40-50% of the income. If your EMI is above this, banks immediately raise red flags.

What to do for quick loan approval?

• Close small loans.
• Clear your credit card dues in full.
• Reduce the Debt to Income Ratio before taking a personal loan.
• Lower the EMI, higher will be the approval chances.

Repeatedly applying for loan also results in rejection of the application.

According to financial experts, many people make the mistake of filling the form everywhere, it will be found somewhere. But by doing this many hard inquiries appear in your CIBIL. What the bank thinks from this is that the customer needs money immediately, he is in financial stress, the customer is worried about the loan and then despite having a high score, the bank says no.

Bank's own records, which CIBIL never shows

Everything may look good in your CIBIL Score, but the internal records of the bank keep its own history. If ever EMI was late, loan settlement was done, there was a dispute with the bank, then the same old story again becomes a wall between your approval. The bureau may be updated, but the bank does not forget its old records.

Read this also- Can I get a loan without CIBIL score? Know 6 easy ways

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