There are several key HDFC personal loan rejection reasons, mainly around financial instability, repayment capacity, and documentation. One major reason is insufficient income. HDFC stipulates a minimum monthly income threshold (often around Rs. 25,000 for many salaried applicants), and when your income after deductions falls short, your application may be declined.
What Reasons for HDFC Bank Personal Loan Rejection?
Apart from low income, a few other reasons include:
A low credit score or poor credit history. If your CIBIL or other credit bureau score reflects late payments, defaults, or insufficient credit track record, this increases perceived risk for the bank, making rejection more likely.
Job instability also plays a significant role. Applicants who change jobs very frequently, have gaps in employment, or lack continuity in their current role may be seen as having unreliable income flows. HDFC prefers stability; at least some consistent experience in the current organisation enhances chances.
Yet another factor is the debt-to-income ratio (sometimes called Fixed Obligations to Income Ratio FOIR).
If too much of your income is already committed to existing EMIs, credit card dues or other financial obligations, HDFC may conclude you lack sufficient disposable income to take on a new loan safely. High debt burden thus works against approval.
Additionally, incomplete or incorrect documentation can lead to rejection of inaccurate income proofs, mismatches in identity/address documents, or missing paperwork can stall or deny the loan. Errors in the application or misrepresentation may also cause a refusal.
That’s it. I hope this helps!
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What is HDFC Personal Loan Rejection Reasons?
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2025-09-30T09:29:22+00:00 2025-09-30T12:52:28+00:00Comment
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