Can my used car loan be rejected after pre-approval?

Yes, it can. A pre-approval only means the lender is comfortable with your profile at a preliminary stage. It is based on limited information and does not guarantee final approval. The loan is sanctioned only after detailed checks are completed and the specific car is reviewed.

A rejection can happen if there is a change in your financial position or documentation after pre-approval. A job switch, drop in income or taking on a new loan may affect eligibility. Lenders reassess the numbers before disbursal. And even small changes can alter the outcome.

The car itself can also become a reason. If the vehicle is older than permitted, has discrepancies in the RC, an unresolved previous loan, or is valued lower than expected, the lender may refuse to fund that purchase. Document mismatches can also cause similar issues. Differences in address details, bank statements or credit data are taken seriously.

To reduce the risk, keep your finances stable until approval is complete, avoid new borrowings, and respond quickly to any clarification requests. If a loan is declined, ask for the exact reason. Many issues can be resolved before applying again.