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Loan Rejection Letter Format from the Bank to a Customer

Lenders reject loan applications due to several reasons viz. low salary, bad credit scores, no employment records, business revenue not satisfactory, etc. Many times, loan applications are rejected because of incomplete loan applications lacking required supporting documents.

loan rejection letter from bank to customer
As a loan applicant, you should always try to fill in all the necessary details in the loan application and provide other supporting documents as may be asked by the lender. Never provide any fake documents as this may not only lead to rejection but also the lender may take legal action against you for this.

Here is an example of such a loan rejection letter by a bank.


Ref: __________
Date: _________

(Name of the Applicant)
Mob. ________

Reg: Your application for personal/ business/ home loan.

Dear Sir/Madam,

This has reference to your application for a personal/ business/ home loan dated _________. We have reviewed the same along with the documents submitted by you.

After careful consideration of your application, documents and present credit score, we regret to inform you that we will not be able to approve your loan application at present, as it does not satisfy all the criteria set by our bank for such a loan, or the credentials and documents provided by you failed to be verified from our end.

Thank you for showing interest in our loan schemes. You may apply for a loan again after 3 months. In the meantime, you may avail any other services of our bank.

Yours faithfully,

(Name of the Officer)

(Bank Seal)