Loan Stuck in ‘Under Review’? What That Status Actually Means

If your loan application shows ‘Under Review’, you are not alone. This is one of the most common and most misunderstood loan statuses in India. Whether you applied for a personal loan, home loan, or business loan, seeing this message can cause stress. Does it mean rejection? Is the bank doubting your profile? How long will it take?

The simple answer is this: ‘Under Review’ means the lender is verifying your details before making a final decision. It is neither approval nor rejection. In this guide, we explain what this status actually means, why it happens, typical timelines in 2026, and how you can speed up the process using smarter tools like Saarathi.ai.

At Saarathi.ai, we have observed that most delays are avoidable when borrowers understand how lenders assess risk and prepare accordingly.

What Does ‘Under Review’ Mean in a Loan Application?

When your loan shows Under Review, it means the lender is:

• Verifying your identity and KYC documents

• Checking your credit score and repayment history

• Evaluating your income stability

• Assessing your debt-to-income ratio

• Running internal risk checks

This stage is also called credit appraisal or underwriting.

Underwriting ensures that the lender complies with guidelines from the Reserve Bank of India and internal credit policies.

It is a standard part of the approval process and not a negative signal by default.

Why Is My Loan Stuck Under Review?

If your status has not changed for several days, one of these reasons may apply.

1. Document Verification Delays

Common issues include:

• Blurry PAN or Aadhaar copies

• Income mismatch between salary slips and bank statements

• Missing ITR for self-employed applicants

• Incorrect employer details

Even small discrepancies can trigger manual verification.

2. Credit Score Evaluation

Most lenders check your CIBIL or other bureau score. If your score is:

• Below 700 for personal loans

• Below 750 for home loans

The application may move into deeper review.

At Saarathi.ai, we have observed that applicants with recent credit card overdues or high credit utilization often get flagged for manual assessment.

3. High Existing EMIs

Lenders calculate your FOIR or Fixed Obligation to Income Ratio.

If your total EMIs exceed 40-60 percent of your monthly income, your file may require additional risk checks.

4. Employer or Business Risk Category

Some industries are considered higher risk, especially:

• Startups under 1 year

• Cash-heavy businesses

• Gig economy roles

The lender may verify your income stability more carefully.

5. Large Loan Amount

Higher ticket loans, especially home loans above Rs 50 lakh, typically undergo stricter scrutiny.

6. Internal Bank Policy Checks

Banks and NBFCs constantly adjust risk models based on market conditions, RBI circulars, and economic outlook. As reported by Economic Times, lenders have tightened unsecured lending norms in recent years to control risk exposure.

This means even good profiles may see slightly longer review times.

How Long Does ‘Under Review’ Usually Take?

Typical timelines in India:

If your case crosses these ranges, it may need manual intervention.

With AI-driven platforms like Saarathi.ai, pre-eligibility checks reduce review time significantly because mismatches are identified before submission.

You can compare personal loan offers on Saarathi.ai and get AI-based recommendations tailored to your credit profile.

Does ‘Under Review’ Mean Rejection?

No.

In fact, most approved loans pass through the Under Review stage.

It simply means:

• The lender is analyzing your risk profile

• A decision has not been finalized

• Additional checks are underway

Rejection usually shows as:

• Declined

• Not Approved

• Application Closed

So if your application says Under Review, you are still in the race.

What Happens During Loan Underwriting?

Let us break down the internal process.

Step 1: KYC Authentication

• PAN verification

• Aadhaar authentication

• Address check

Step 2: Credit Bureau Pull

Lenders check:

• CIBIL score

• Payment history

• Active loans

• Credit utilization

Step 3: Income Assessment

For salaried:

• Last 3 to 6 months salary slips

• Bank statements

• Employer stability

For self-employed:

• ITR for 2 to 3 years

• GST returns

• Business turnover trends

Step 4: Risk Scoring

Lenders use internal algorithms to assign risk scores.

At Saarathi.ai, our Saarathi Recommendation Engine evaluates multiple lenders simultaneously, improving match accuracy before submission.

This reduces rejection probability and review delays.

Step 5: Final Approval or Query

The lender may:

• Approve

• Ask for additional documents

• Reject

You can track your application in Saarathi Bazaar to see real-time status updates.

Common Myths About ‘Under Review’

Myth 1: The Bank Thinks I Am Fraudulent

Reality: It is routine due diligence.

Myth 2: Calling Customer Care Speeds It Up

Reality: Customer care cannot override underwriting.

Myth 3: Applying to Multiple Banks Helps

Reality: Multiple hard inquiries can reduce your credit score and worsen your profile.

Instead, it is smarter to ask eligibility questions via Saarathi AI before applying.

How to Speed Up a Loan Under Review

If your application feels stuck, take these steps.

1. Check for Pending Queries

Log in and check if the lender requested:

• Updated bank statement

• Clarification on address

• Additional income proof

Respond immediately.

2. Reduce Credit Utilization

If your credit cards are maxed out, repay some outstanding dues.

High utilization signals stress.

3. Avoid Fresh Loan Applications

Do not apply elsewhere until the current review is complete.

4. Ensure Stable Contact Details

Missed verification calls often cause delays.

5. Use AI-Based Pre Screening

At Saarathi.ai, borrowers who complete digital profiling and AI eligibility checks see faster approvals because:

• Lender fit is optimized

• Documents are pre-validated

• Risk flags are identified early

Why Digital Platforms Reduce ‘Under Review’ Delays

Traditional bank processes rely heavily on manual verification.

Digital marketplaces like Saarathi.ai offer:

• Paperless document upload

• Instant KYC verification

• AI risk profiling

• Multi-lender comparison

• Real-time tracking

The Saarathi Bazaar dashboard allows you to monitor:

• Application stage

• Document status

• Lender queries

• Final approval

This transparency reduces anxiety and improves approval speed.

When Should You Be Concerned?

You should follow up if:

• Status exceeds 10 working days for unsecured loans

• You received no communication

• The lender asked for documents but status did not update

In such cases, consider re-evaluating your eligibility through a smarter channel partner model.

Saarathi.ai connects borrowers with 110 plus lenders including banks and NBFCs, ensuring you do not depend on a single institution.

RBI Guidelines and Lending Discipline

The Reserve Bank of India mandates proper due diligence to prevent over-leveraging and protect borrowers.

Recent regulatory tightening in unsecured lending means lenders must:

• Assess repayment capacity

• Avoid aggressive disbursal

• Maintain asset quality

This explains slightly longer review times in 2026 compared to earlier years.

However, responsible lending ultimately benefits borrowers by preventing debt traps.

Signs Your Loan Is Likely to Be Approved

While no guarantee exists, strong indicators include:

• Credit score above 750

• Stable job of 2 plus years

• Low existing EMIs

• Clean repayment history

• No recent bounced EMIs

At Saarathi.ai, we have observed approval rates improve significantly when applicants check personalized offers instead of applying randomly.

Real Example: Personal Loan Under Review

Rahul, a salaried IT employee in Pune, applied for a Rs 5 lakh personal loan. His status showed Under Review for 3 days.

Reason:

• His bank statement showed one recent EMI bounce due to insufficient balance.

The lender requested clarification.

After submitting proof of salary credit and explaining the bounce was temporary, his loan was approved on day 5.

Lesson: Under Review often means verification, not rejection.

FAQs

1. How long can a loan stay Under Review in India?

For personal loans, typically 1 to 5 days. Home loans may take up to 10 days.

2. Can I cancel my application while it is Under Review?

Yes. However, the hard inquiry may already reflect in your credit report.

3. Does Under Review affect my credit score?

No. The status itself does not. Only the credit inquiry impacts your score slightly.

4. Should I apply to another lender if it is delayed?

Not immediately. Multiple applications can reduce your score and hurt approval chances.

5. Can Saarathi.ai help if my loan is stuck?

Yes. You can reassess eligibility, compare lender policies, and track your application through Saarathi Bazaar for better clarity.

Conclusion

Seeing your loan stuck in ‘Under Review’ can feel stressful, but remember:

• It is a normal underwriting stage

• It does not mean rejection

• Most approvals pass through this step

• Delays usually relate to documentation or risk checks

• Smart pre-eligibility screening reduces waiting time

Instead of guessing what lenders want, use AI-powered guidance to apply correctly the first time.

Discover personalized loan options, compare offers transparently, and experience faster approvals on Saarathi.ai today.