About the Rejection Risk Check
The funding rejection risk check is a pre-application diagnostic built around common business loan rejection reasons and their equivalents for subsidies and grants. Choose the type of funding — a bank or MSME loan, a government subsidy scheme or a startup grant — and answer five Yes or No questions. The tool returns a risk level, a score out of 100 and a suggested fix for every red flag.
It is for business owners and founders who want to apply once and apply well. A rejected application costs time and, in the case of loans, can leave a trail of enquiries on your credit report. Consultants can use the same questions as a quick screening list before they take on a client's application.
The score is the combined weight of the questions you answer No. Each route has five factors weighted 25, 20, 20, 20 and 15. A total of 45 or more is rated High, 20 to 44 Moderate, anything above zero Low, and zero Very low. The heaviest factors are credit score, scheme eligibility and DPIIT recognition.
How to use it
- 1Select the funding route: bank or MSME loan, government subsidy scheme, or startup grant or seed fund.
- 2Answer Yes or No to all five questions for that route.
- 3Read your rejection risk level, the risk score and the number of red flags.
- 4Work through the suggested fixes from the top, since they are listed in order of weight, and run the check again.
Frequently asked questions
How is the rejection risk score calculated?
Each of the five questions carries a weight of 25, 20, 20, 20 or 15 points. Every No adds its weight to your risk score, so the maximum is 100. The tool rates 45 or more as High, 20 to 44 as Moderate, a score above zero as Low and a score of zero as Very low.
Which business loan rejection reasons does the tool check?
For a bank or MSME loan it asks whether your credit score is above 700, whether your six-month bank statement is free of cheque bounces, whether you have filed income-tax returns for the last two years, whether existing EMIs are below half of your income, and whether you hold GST or Udyam registration.
What does it check for government subsidy schemes?
It asks whether your business type matches the scheme's eligibility, whether the unit is new where the scheme funds only new units, whether your documents are complete and consistent, whether the project cost is within the scheme's cap, and whether you have avoided taking the same subsidy earlier.
What does it check for startup grants and seed funds?
The five factors are DPIIT recognition, a working prototype or MVP, genuine innovation in the product or process, a professionally prepared pitch or project report, and a match with the focus sector of the incubator or authority. Each No produces a short note explaining why it matters and how to address it.
Does a Very low result mean my application will be approved?
No. The tool is an indicative diagnostic built on common rejection patterns. It cannot see your actual credit report, financial statements or project, and lenders and authorities apply their own criteria. A Very low result only means that none of the five screening factors for that route is an obvious problem.
What should I do about the red flags?
Deal with them in the order shown, since the fixes are sorted by weight. Some, such as registering under Udyam, are quick. Others, such as rebuilding a credit score or keeping six clean months of banking, take time, and it is usually wiser to wait than to apply and be declined.