Written reasons when an MSME loan application is rejected Reasons for loan rejection
If a bank turns down an MSME loan application, it must give the borrower the main reasons in writing within its sanction time norms.
Last updated on
- Status
- Open
- Run by
- Reserve Bank of India
What you get
- The main reason or reasons for rejection given to you in writing
- Given within the bank's board approved sanction time norms
- Lets you fix the gap and apply again, or take the matter to the bank's grievance officer and then the RBI Ombudsman
Who can apply
- Micro, small and medium enterprises.
- Applies to scheduled commercial banks, which include public sector, private and small finance banks. The RBI direction excludes regional rural banks such as Kerala Grameena Bank, and co-operative banks such as Kerala Bank are not covered by it
How to apply
- If your application is turned down without written reasons, ask the branch for them in writing
- Use the reasons to fix the gap, or to apply at another bank
- If the bank does not reply within 30 days, or you are not satisfied, complain to the RBI Ombudsman at cms.rbi.org.in
In person, your bank branch
In Kerala, applies at every branch of a scheduled commercial bank in Kerala.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.