Fintech founder's home loan rejected. Reason? Bank calls him 'high-risk'
What's the story
Pravin Jadhav, the founder and CEO of Raise Financial Services valued at around $1.2 billion, has claimed that a leading private bank denied his home loan application. The reason? They consider him a high-risk individual due to his status as a start-up founder. Jadhav shared his experience on social media, highlighting the challenges faced by entrepreneurs in securing loans despite their financial stability.
Financial standing
Customer of the bank for over 25 years
Jadhav, who has been a customer of the bank for over 25 years, said he has a CIBIL score of over 800 and assets with the bank worth five to six times the value of his loan application.
He also claimed that he is among the top 0.1% customers in terms of assets.
Despite these factors, his application was rejected due to his status as a founder.
Irony noted
'Might have to live in my office'
Jadhav pointed out the irony that the same bank had previously recognized him as a top fintech innovator. The entrepreneur ended his post on a humorous note, saying he might have to live in his office for rest of his life because of this rejection.
Online response
Post goes viral, sparks debate on funding challenges
Jadhav's post quickly went viral on social media, garnering a range of reactions from entrepreneurs, investors, and netizens.
Some users suggested moving all banking relationships with the bank in question might make them reconsider their decision.
Others offered tongue-in-cheek explanations for the rejection, such as founders being considered high-risk because they can pay off a 30-year loan in three years with one big financial event.