A home loan rejection is an experience many borrowers dread, but for one prominent Indian fintech founder, it turned into an unexpected reality. Pravin Jadhav, founder of Raise Financial Services and a former executive, recently shared on social media that a leading private bank turned down his home loan application despite his long-standing banking relationship and robust financial standing.
In a candid post that quickly drew attention online, Jadhav highlighted the unexpected nature of the refusal. According to his account, he has been a customer of the bank for more than 25 years, maintains a CIBIL score of around 800, and holds assets with the lender valued at nearly five to six times the amount of the loan he requested. Furthermore, he noted that he likely ranks among the bank’s top 0.1% of customers by assets.
Pointing out the irony of the situation, Jadhav mentioned that the financial institution had previously recognized him as a leading fintech innovator. Yet, during the credit assessment process, the bank reportedly categorized him as a high-risk borrower simply because of his status as a startup founder. Highlighting the paradox, he remarked that the bank easily grants loans to regular employees of his company, but not to him due to his entrepreneurial title.
Industry experts note that traditional lending assessments often treat salaried employees and business owners through different frameworks. Salaried workers typically have predictable monthly cash flows, making future repayments straightforward for banks to project. In contrast, entrepreneurs and founders often have their net worth tied up in company stock holdings, equity, or business assets, while their personal income can fluctuate based on business performance and compensation structures.
Consequently, even financially successful founders frequently encounter stricter scrutiny during credit evaluations. Banks often seek distinct assurances regarding regular income stability and predictable repayment capabilities before approving personal credit lines like home loans. Jadhav’s experience has since sparked broader discussions on social media regarding how conventional credit evaluation systems accommodate modern entrepreneurs whose wealth accumulation occurs outside traditional salary structures.