Can internal policies override your credit history and score?
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I was instantly rejected for the SBI Cashback card due to 'internal policy,' and it seems my credit score and history didn't matter. Can I really increase my chances with PSU banks, or are the 'cooling-off' periods and existing relationships just a myth?
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Yes, in India, banks sometimes look beyond just credit scores when deciding on loans. They also consider factors such as the stability of your income, your job type, and your debt-to-income ratio.
If you’re dealing with public sector banks (PSUs), it’s a good idea to have a salary account with them for at least six months. Try to keep your debt-to-income ratio under 40%, and avoid applying for multiple loans within 90 days — yes, they really do have this "cooling-off" period. If you're just starting out, consider getting a secured credit card first to help build some trust with the PSU bank.