People With 750+ CIBIL Still Get Loan Rejections—Here’s Why

Anyone will be surprised to hear that their applications have been rejected, even if they possess a high credit score and a strong history. Incidents of loan rejection despite good CIBIL score are common, and there are many influencing factors.

This guide aims to debunk the common myth that having a very high CIBIL score ensures instant loan approval, explore other important reasons for loan rejection in India, and share smart ways to improve chances of getting your loan approved.

What 750+ CIBIL Really Means in India

High CIBIL score loan approval - this is the common belief. However, it is only one component of the lender’s evaluation. Lenders see the score as a sign of responsible borrowing, but it is not the only factor that matters.

Corrective Measures: View your high score as a ticket to the eligibility pool rather than the approval itself.

Why You May Still Face Loan Rejection Despite Good CIBIL Score

Here are the key factors affecting loan approval beyond your CIBIL score:

1. High Debt-to-Income (DTI) / Fixed Obligation Ratio

Even if your credit score is excellent, lenders may see you as financially overburdened if a substantial portion of your income is already tied up in existing EMIs and expenses. Many banks prefer to keep your DTI within 40%–50% of your net income.

Example: Salary of ₹Rs 50,000 with ₹Rs 25,000 in EMIs equals 50 % DTI; higher risk.

Fix: Before the application, reduce your current debt or raise your income.

2. Unstable Income or Employment

Banks prefer steady income. Frequent job changes, irregular freelance earnings, or short wage histories can be red flags.

Fix: Maintain at least 6–12 months in your current job and document income consistently.

3. Too Many Hard Enquiries

Applications for several loans or credit cards in a brief period, usually 3 to 6 months, signal credit hunger and can cause loan rejection despite good CIBIL score, since this indicates financial stress for lenders.

Solution: Ensure you meet the eligibility criteria before applying.

4. Poor Credit Mix

Even with a high credit score, relying on just one type of credit, like only credit cards, can make banks cautious, especially when evaluating larger loans such as home or auto loans. Lenders prefer borrowers who show the ability to manage a mix of credit types, including both revolving credit and instalment loans.

Solution: Build a mix of credit responsibly – secured and unsecured.

5. Incomplete or Incorrect Documentation

Missing or incorrect documentation can lead to immediate rejection. Lenders cross-check KYC, income evidence, bank statements, ITRs, and employment information.

Solution: Go over all paperwork before filing.

6. High Credit Utilisation

Even with a great score, frequently utilising more than roughly 30% of your total credit limit can suggest risk.

Solution: Reduce your outstanding balances and maintain credit utilisation below 30% of your total limit.

7. Co-applicant’s Weak Profile

In joint applications, one’s weak credit profile can reduce overall chances.

Solution: Before requesting jointly, evaluate and raise combined profiles.

8. Lender Policies & Internal Criteria

Though your basics look good, every bank or NBFC has specific internal regulations, minimum income levels, employer lists, or age requirements, that could lead to loan rejection despite good CIBIL score.

A Quick Look: Factors Affecting Loan Approval Chances

Why banks reject loans? Along with the CIBIL score, lenders consider the following factors when evaluating loan applications:

CIBIL Score and Loan Approval: Some More Myths

Here are some more misconceptions around CIBIL score and loan approval.

Myth 1: Checking your own CIBIL score frequently can hurt loan approval.
Fact: Soft checks, like viewing your own credit report, do not impact your score. Only hard enquiries from lenders affect your approval chances.

Myth 2: Paying off all loans at once will automatically boost your approval chances.
Fact: Sudden repayment can reduce your credit mix, potentially making lenders cautious. Responsible ongoing credit management is more important.

Myth 3: Closing defaulted accounts immediately will repair your score.
Fact: Defaults remain on your credit report for up to 7 years, even if you pay them off. Closing accounts doesn’t remove negative history instantly.

How to Improve Chances Even With a Good CIBIL Score

Here are tips for avoiding a 750 CIBIL score loan rejection:

• Keep a constant income and employment.
• Use credit sensibly; keep balances low and settle EMIs on time.
• Avoid applying everywhere all at once.
• Add a little secured loan responsibly to increase your credit mix.
• Check credit reports; correct mistakes in advance.
• Ensure all documents are complete and accurate.
• Review lender-specific criteria

Conclusion

Particularly if your score is beyond 750, a loan rejection despite good CIBIL score can be upsetting. Lenders, however, see beyond credit scores and consider income stability, debt ratios, documentation, credit mix and internal risk policies that really influence decisions. Knowing and tackling these will help you obtain approval for a high-credit-score loan.

Also Read:
- Best Apps & Websites to Check Credit Score in India 2026
- Does Checking Loan Eligibility Reduce Your CIBIL Score?