This is what everyone must do in case a Bank refuses to accept their Loan Application...

Most banks don’t refuse vehicle loans and housing loans because the bank gets a collateral or security in the form of the asset being purchased... and these are considered safe loans.

However, things get complicated when a Business Owner wishes to take a loan from a bank to set up a business or for expansion, and the bank refuses to accept the loan application...

In fact, they refuse to even acknowledge the application giving some excuse or the other.

It’s become so common in the business circle, esp for MSMEs that the RBI has a solution for this problem...

In case a Branch Manager does not accept your loan application file (and you’re certain that all your documents, eligibility and project report are professionally verified) you must insist that they give you a written acknowledgement of having received your Loan Application.

Most Managers avoid this step because it’s like booking an FIR with the police. Once a written acknowledgment is given of having received the file... they will have to review it and consider the proposal seriously.

This is also important because these days the power to decide on business loans for most banks rests with Zonal Offices and not directly with the Branch Manager.

So this would ensure at least the file reaches the right folks in the bank, and you have a fair chance at being considered at least.

And in case the Manager refuses to give a written receipt of the file, the RBI insists that you can complain against the branch on CMS .RBI . gov . in which is the RBI’s Complaint Management System.

It’s never easy to raise money, be it debt or equity... but knowing the right processes and hacks help.


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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.

Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.