{"id":12709,"date":"2020-02-10T18:33:30","date_gmt":"2020-02-10T13:03:30","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=12709"},"modified":"2022-02-23T17:53:15","modified_gmt":"2022-02-23T12:23:15","slug":"government-app-when-banks-deny-loans-to-your-business","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/","title":{"rendered":"Government App Can Help You When Banks Deny Business Loan"},"content":{"rendered":"

Did your bank reject your business loan application? In an effort to help MSMEs get access to easy credit, the Government of India is launching an app that will let businesses raise complaints when banks deny loans.\u00a0<\/span><\/p>\n

What is in an app?<\/h3>\n

According to the <\/span>Deccan Herald<\/span>, this app-based loan financing system will start tracking banks that deny credit to MSMEs. This will not just help the Government check Non-performing Assets but also improve loan availability to small businesses.\u00a0<\/span><\/p>\n

Finance Minister Nirmala Sitharaman said if banks deny loans to small businesses without reason, the business can lodge a complaint immediately, using the app.\u00a0<\/span><\/p>\n

The loan applicant should send a copy of the complaint to the bank manager as well at a soon-to-be-announced Government centre where the complaints will be processed.\u00a0<\/span><\/p>\n

Also read: Nirmala Sitharaman\u2019s MSME schemes that have helped businesses before<\/a><\/span><\/span><\/div>\n

What are the reasons for small business loan rejection:<\/h2>\n

While credit has increased by over 14%\u00a0 in the last year, stats show that 80% of banks reject small business loans. Banks reject loans for the following reasons:<\/span><\/p>\n

1. Low credit score:<\/b>\u00a0<\/span><\/h3>\n

Over 72% of small business owners<\/span><\/span><\/a> are still unclear on what a credit score means to their company. In simple terms, a credit score is a number that defines your creditworthiness. It is a three-digit number that allows banks and other non-banking institutions to evaluate how likely you are to repay your debt. Credit scores<\/a> usually range between 300 and 850.<\/span><\/p>\n

\"Banks
A CIBIL Report shows loan borrowing stats between businesses and banks<\/figcaption><\/figure>\n

2. New Business Loan:<\/strong><\/h3>\n

Banks are more likely to reject a loan for a brand new business than an established one, due to the risks involved in paying them off. To cap it all, banks do not see new small businesses as profitable options to lend to. Small businesses tend to ask for smaller loans,\u00a0<\/span><\/p>\n

Most lenders use a <\/span>debt-to-income ratio <\/span>to see if you can handle the payments upon approval of your loan. This helps assess how quickly you will repay your borrowed loans.\u00a0<\/span><\/p>\n

Also read: Risk-free Government loans you can apply for<\/a>\u00a0<\/span><\/strong><\/h5>\n

3. Poor cash flow:<\/strong><\/h3>\n

Banks check how frequently you pay off your monthly working capital requirements. If your cash flow is in the red, there is a high chance the banks do not trust your business to pay the loan on time. In such cases, make sure your cash flow is positive<\/strong>, and there is enough money in your account to take care of your daily operations.\u00a0<\/span><\/p>\n

Your cash flow is positive when the money coming in from sales, accounts receivable is more than the amount you use to pay your vendors, employees and spend money on purchase inventory or raw materials.<\/p>\n

Not too sure how to keep a healthy cash flow for your business? Don\u2019t worry, we have a whole guide to help you out!\u00a0<\/span><\/p>\n

\n

DOWNLOAD CASH FLOW EBOOK HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Did your bank reject your business loan application? In an effort to help MSMEs get access to easy…\n","protected":false},"author":6,"featured_media":12711,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[398],"tags":[2954,2961,2962,1975,3015,2957,2959,2955,2958,3017,3016,2956],"yoast_head":"\nGovernment App Can Help You When Banks Deny Business Loans<\/title>\n<meta name=\"description\" content=\"In an effort to help MSMEs get easy credit, the Government is launching an app to let businesses raise complaints when banks deny loans.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government App Can Help You When Banks Deny Business Loans\" \/>\n<meta property=\"og:description\" content=\"In an effort to help MSMEs get easy credit, the Government is launching an app to let businesses raise complaints when banks deny loans.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog Instamojo\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Instamojo\" \/>\n<meta property=\"article:author\" content=\"facebook.com\/instamojo\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-10T13:03:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-23T12:23:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@instamojo\" \/>\n<meta name=\"twitter:site\" content=\"@instamojo\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Instamojo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/#organization\",\"name\":\"Instamojo\",\"url\":\"https:\/\/www.instamojo.com\/blog\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/Instamojo\",\"https:\/\/www.instagram.com\/instamojo_india\/\",\"https:\/\/www.linkedin.com\/company\/instamojo\/\",\"https:\/\/www.youtube.com\/user\/instamojo\",\"https:\/\/in.pinterest.com\/instamojo\/\",\"https:\/\/twitter.com\/instamojo\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/10\/Instamojo-logo.png\",\"contentUrl\":\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/10\/Instamojo-logo.png\",\"width\":400,\"height\":92,\"caption\":\"Instamojo\"},\"image\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/#website\",\"url\":\"https:\/\/www.instamojo.com\/blog\/\",\"name\":\"Blog Instamojo\",\"description\":\"eCommerce business growth blog\",\"publisher\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.instamojo.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png\",\"contentUrl\":\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png\",\"width\":800,\"height\":500,\"caption\":\"banks deny loans to small businesses - Government introduces new app - Instamojo blog\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#webpage\",\"url\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/\",\"name\":\"Government App Can Help You When Banks Deny Business Loans\",\"isPartOf\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#primaryimage\"},\"datePublished\":\"2020-02-10T13:03:30+00:00\",\"dateModified\":\"2022-02-23T12:23:15+00:00\",\"description\":\"In an effort to help MSMEs get easy credit, the Government is launching an app to let businesses raise complaints when banks deny loans.\\u00a0\",\"breadcrumb\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.instamojo.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Government App Can Help You When Banks Deny Business Loan\"}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#webpage\"},\"author\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/#\/schema\/person\/42d2fa4635c87aa3a0e3665835f155a0\"},\"headline\":\"Government App Can Help You When Banks Deny Business Loan\",\"datePublished\":\"2020-02-10T13:03:30+00:00\",\"dateModified\":\"2022-02-23T12:23:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#webpage\"},\"wordCount\":490,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png\",\"keywords\":[\"Government App\",\"how to complaint if government loans rejected\",\"how to use govt app if loans reject\",\"Loans for small businesses\",\"MSME Loan rejection\",\"MSME schemes for small business\",\"MSMEs denied loan by banks\",\"reason for bank deny loans\",\"reason to reject loan\",\"Reasons for Business Loan Rejection in India\",\"reasons for small business loan rejection\",\"What is government app\"],\"articleSection\":[\"Business Advice\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#respond\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/#\/schema\/person\/42d2fa4635c87aa3a0e3665835f155a0\",\"name\":\"Instamojo\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.instamojo.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1ca6da28cc8b22fb742c790c96543ab9?s=96&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1ca6da28cc8b22fb742c790c96543ab9?s=96&r=g\",\"caption\":\"Instamojo\"},\"description\":\"India's simplest D2C tech platform. Host your online store, create landing pages, or share payment links. Sign up for free.\",\"sameAs\":[\"http:\/\/instamojo.com\",\"facebook.com\/instamojo\",\"https:\/\/twitter.com\/instamojo\"],\"url\":\"https:\/\/www.instamojo.com\/blog\/author\/instamojo\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Government App Can Help You When Banks Deny Business Loans","description":"In an effort to help MSMEs get easy credit, the Government is launching an app to let businesses raise complaints when banks deny loans.\u00a0","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/","og_locale":"en_US","og_type":"article","og_title":"Government App Can Help You When Banks Deny Business Loans","og_description":"In an effort to help MSMEs get easy credit, the Government is launching an app to let businesses raise complaints when banks deny loans.\u00a0","og_url":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/","og_site_name":"Blog Instamojo","article_publisher":"https:\/\/www.facebook.com\/Instamojo","article_author":"facebook.com\/instamojo","article_published_time":"2020-02-10T13:03:30+00:00","article_modified_time":"2022-02-23T12:23:15+00:00","og_image":[{"width":800,"height":500,"url":"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png","type":"image\/png"}],"twitter_card":"summary","twitter_creator":"@instamojo","twitter_site":"@instamojo","twitter_misc":{"Written by":"Instamojo","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Organization","@id":"https:\/\/www.instamojo.com\/blog\/#organization","name":"Instamojo","url":"https:\/\/www.instamojo.com\/blog\/","sameAs":["https:\/\/www.facebook.com\/Instamojo","https:\/\/www.instagram.com\/instamojo_india\/","https:\/\/www.linkedin.com\/company\/instamojo\/","https:\/\/www.youtube.com\/user\/instamojo","https:\/\/in.pinterest.com\/instamojo\/","https:\/\/twitter.com\/instamojo"],"logo":{"@type":"ImageObject","@id":"https:\/\/www.instamojo.com\/blog\/#logo","inLanguage":"en-US","url":"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/10\/Instamojo-logo.png","contentUrl":"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/10\/Instamojo-logo.png","width":400,"height":92,"caption":"Instamojo"},"image":{"@id":"https:\/\/www.instamojo.com\/blog\/#logo"}},{"@type":"WebSite","@id":"https:\/\/www.instamojo.com\/blog\/#website","url":"https:\/\/www.instamojo.com\/blog\/","name":"Blog Instamojo","description":"eCommerce business growth blog","publisher":{"@id":"https:\/\/www.instamojo.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.instamojo.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#primaryimage","inLanguage":"en-US","url":"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png","contentUrl":"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png","width":800,"height":500,"caption":"banks deny loans to small businesses - Government introduces new app - Instamojo blog"},{"@type":"WebPage","@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#webpage","url":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/","name":"Government App Can Help You When Banks Deny Business Loans","isPartOf":{"@id":"https:\/\/www.instamojo.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#primaryimage"},"datePublished":"2020-02-10T13:03:30+00:00","dateModified":"2022-02-23T12:23:15+00:00","description":"In an effort to help MSMEs get easy credit, the Government is launching an app to let businesses raise complaints when banks deny loans.\u00a0","breadcrumb":{"@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.instamojo.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Government App Can Help You When Banks Deny Business Loan"}]},{"@type":"Article","@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#article","isPartOf":{"@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#webpage"},"author":{"@id":"https:\/\/www.instamojo.com\/blog\/#\/schema\/person\/42d2fa4635c87aa3a0e3665835f155a0"},"headline":"Government App Can Help You When Banks Deny Business Loan","datePublished":"2020-02-10T13:03:30+00:00","dateModified":"2022-02-23T12:23:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#webpage"},"wordCount":490,"commentCount":2,"publisher":{"@id":"https:\/\/www.instamojo.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#primaryimage"},"thumbnailUrl":"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2020\/02\/banky-deny-loans-to-small-businesses-Government-introduces-new-app-Instamojo-blog.png","keywords":["Government App","how to complaint if government loans rejected","how to use govt app if loans reject","Loans for small businesses","MSME Loan rejection","MSME schemes for small business","MSMEs denied loan by banks","reason for bank deny loans","reason to reject loan","Reasons for Business Loan Rejection in India","reasons for small business loan rejection","What is government app"],"articleSection":["Business Advice"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.instamojo.com\/blog\/government-app-when-banks-deny-loans-to-your-business\/#respond"]}]},{"@type":"Person","@id":"https:\/\/www.instamojo.com\/blog\/#\/schema\/person\/42d2fa4635c87aa3a0e3665835f155a0","name":"Instamojo","image":{"@type":"ImageObject","@id":"https:\/\/www.instamojo.com\/blog\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/1ca6da28cc8b22fb742c790c96543ab9?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1ca6da28cc8b22fb742c790c96543ab9?s=96&r=g","caption":"Instamojo"},"description":"India's simplest D2C tech platform. Host your online store, create landing pages, or share payment links. Sign up for free.","sameAs":["http:\/\/instamojo.com","facebook.com\/instamojo","https:\/\/twitter.com\/instamojo"],"url":"https:\/\/www.instamojo.com\/blog\/author\/instamojo\/"}]}},"_links":{"self":[{"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/posts\/12709"}],"collection":[{"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/comments?post=12709"}],"version-history":[{"count":13,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/posts\/12709\/revisions"}],"predecessor-version":[{"id":21646,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/posts\/12709\/revisions\/21646"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/media\/12711"}],"wp:attachment":[{"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/media?parent=12709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/categories?post=12709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.instamojo.com\/blog\/wp-json\/wp\/v2\/tags?post=12709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}