Education
Factors that Contribute to Business Loan Application Rejection
One of the many things that businesses don’t want to confront is rejection, whether it’s for a new project or business financing. However, financial institutions are extra cautious when conducting credit appraisals. They consider a number of factors before approving your loan application.
As a result, if you don’t want to find yourself in a loan refusal situation, keep the following points in mind.
1. Poor credit report
One of the primary reasons for business loan rejection is poor credit history. Financial institutions first assess your credit report when you apply for a loan. They look at how many existing debts you have and how much you are paying in EMIs. They also verify if any previous EMIs have been missed. In case of any negative recordings on your report, the lender will reject your application.
However, there are several circumstances in which a bad credit record is not your fault. For example, sometimes financial institutions forget to send the loan closure report to the credit bureaus. In such circumstances, your best solution is to contact your lender and request that the disparity is resolved. You can also send the credit bureau a rectification mail along with supporting papers like a no-objection certificate (NOC)
2. Poor cash flow
Cash flow is a measure of your company’s liquidity. It informs lenders about the amount of cash you have on hand and in the bank. One of the numerous issues that lenders cannot ignore is a lack of liquidity. Assume you require funds in the range of Rs 25 lakhs. Your company’s financials indicate a healthy profit, but your cash flow displays a negative amount. In this case, it is assumed that either your business expenses are excessive or you are wasting money on things that aren’t necessary.
To improve the cash flow in your company, you can consider taking the following measures.
● Sell off any assets that are no longer relevant to your business.
● Instead of purchasing new machinery or office space, consider leasing.
● Launching new products will help you increase your revenue.
● Revise the price of your existing products.
3. Lack of business plan
Financial institutions ask you to present a well-detailed business plan when you apply for a business loan. They want to know about your projected sales, expansion plans, and revenue projections for the next five years, among other things. Some financial institutions also ask for financial statements. Thus, try to get your balance sheet and profit and loss statement audited by a chartered accountant if possible.
You may also seek guidance from business advisors or have a documented company plan reviewed by them to make the application process move more smoothly.
4. Multiple loan applications
The requirements for funds in business might arise at any time. And if you don’t plan ahead of time, you can miss out on a fantastic opportunity. However, to obtain funds quickly, one of the most common mistakes made by businesses is to apply for a loan with many lenders at the same time without waiting for any lender to approve or disapprove.
Submitting multiple applications at the same time gives the lender an impression that you are a desperate borrower. Thus, resulting in a loan application rejection.
5. Start-ups
Financial institutions are hesitant to lend to start-up companies. The reason is that such businesses have no prior business credit history. They also lack financial information that would allow a lender to assess their company’s viability. As such, if you have just started your business, you are left with a handful of financing options, of which a few are listed below.
● You may raise funds from private equity firms, venture capitalists, or angel investors.
● If you want to start a business in addition to your full-time employment, the best option is to apply for a personal loan.
● You can also choose from a variety of government loan programmes on the market.
● If nothing else works out, consider utilising your savings or enlisting the assistance of your friends or relatives. You may also want to explore forming a partnership firm, as your business partner may be willing to invest a significant amount of money in your company.
6. High risks business
There are various businesses whose performance relies upon the country’s economic conditions, government policies, etc. There are also a few businesses that boom only in a specific season. Financial institutions consider such businesses risky and do not grant loans to them.
Assume when there is a complete lockdown in the country and gyms and other public amenities were closed. In such situations, do you think the lender will approve you for a loan? The answer is a big NO. And if they do, they will charge a hefty business loan interest rate to mitigate the potential risks.
To conclude:
Now that you are aware of the factors that influence the approval of your business loan, you can proceed with your application. Remember, avoiding the above blunders can help you get funds at an affordable business loan interest rate.
Education
Delhi High Court orders Law Prep Tutorial to stop using CLAT topper’s identity
Google and Meta have 72 hours to pull content that a judge called a defamatory campaign against a rival coaching firm.
DELHI: India’s fiercely competitive law-entrance coaching industry has landed in court, and a Delhi judge has wasted little time in drawing battle lines.
The Delhi high court on April 13th passed an ad-interim order in favour of Toprankers EdTech Solutions Private Limited, which runs the coaching platform LegalEdge, and Geetali Gupta, the student who secured All India Rank 1 in the Common Law Admission Test 2026. The order, passed by Justice Tushar Rao Gedela, restrains LPT EdTech Private Limited, which operates under the name Law Prep Tutorial, from using Gupta’s name, images or identity in any form across digital platforms.
A topper, a turf war and a rejected sponsorship deal
The dispute has its roots in a familiar story: a prized student, two rival coaching firms, and a falling-out over who gets the credit. According to the plaintiffs’ submissions, Gupta was enrolled in LegalEdge’s Champions Batch I programme and had credited the platform publicly for her result. Her association with Law Prep Tutorial was, the court was told, limited to mock tests and a handful of classes.
Following the declaration of results, Law Prep Tutorial allegedly approached Gupta and her family with an offer to sponsor her five-year college fees in exchange for exclusive association. The family declined. What followed, the plaintiffs say, was a sustained digital campaign against LegalEdge and against Gupta herself.
Content published across YouTube, LinkedIn, blogs and other social media platforms included a video titled “CLAT 2026 AIR 1 Geetali Gupta Controversy Exposed” and a blog post styled as an exposé of the rivalry between the two firms. The plaintiffs alleged these contained defamatory statements accusing LegalEdge of fraud, unethical practices and making false claims about toppers. AI-generated and morphed images were also said to have been circulated, including material falsely associating Gupta with Law Prep Tutorial and depicting LegalEdge’s directors in a damaging light.
What the court found
At the prima facie stage, Justice Gedela found that the blogs, posts, reels and other material on record appeared disparaging and designed to damage LegalEdge’s reputation. The defendants, the court observed, had prima facie carried out a defamatory campaign using content that appeared to have been published wilfully. The use of Gupta’s name and likeness, including AI-generated material, was found unjustified, particularly given that she had publicly credited LegalEdge and had asked the defendants to stop using her name. The court noted pointedly that the student had been drawn into the dispute as a “pawn.”
The orders
The directions are sweeping. Law Prep Tutorial and associated persons are restrained from publishing, sharing or disseminating any defamatory or derogatory content against LegalEdge across any digital platform. They are further barred from using Gupta’s name, identity or images in any form, including AI-generated or manipulated content. They are also prohibited from deleting or tampering with any internal data or communications relating to the campaign.
Critically, Google and Meta, covering YouTube, Facebook and Instagram, have been directed to disable, block access to, remove or suspend all identified content within 72 hours of the order being uploaded. The case, numbered CS(COMM) 344/2026, is listed before the joint registrar on July 14th and before the court on August 24th. Toprankers was represented by senior advocate J. Sai Deepak, alongside Ankur Khandelwal, Ravi Vaswani and Anchit Oswal, briefed by Zentrum Law Partners.
The case is a sharp reminder that in India’s cutthroat test-preparation industry, the fight for a topper’s endorsement can end up costing far more than a college sponsorship ever would.
