Why Do Banks Reject MYSY Applications?

Being Selected by the DWGC Doesn't Guarantee a Bank Loan

The District Working Group Committee selecting your application is a state-government-side step — the bank then makes its own independent credit decision. Banks can and do decline applications that clear the DWGC stage.

Common Bank-Side Reasons

• The bank's own assessment finds the project's revenue projections unrealistic.
• Concerns about repayment capacity given the applicant's financial background.
• Incomplete KYC or banking documentation.
• The branch's own lending appetite or internal targets at that point in time.

What Helps

A strong, realistic DPR (not an inflated one) and complete documentation going into the bank stage reduce the chance of a bank-side decline. If a bank does decline, you can typically approach a different branch or bank — the DWGC selection itself doesn't expire immediately, though timelines vary.

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