Katyaini Kotiyal

Have you noticed how every time you try to download a statement, check an EMI, or raise a query, you are first asked for your loan account number? It is the one detail that ties your entire loan journey together.

In 2025, 40%-45% of all personal loans sanctioned by banks in India were indeed top-up loans. So, many individuals feel the need for extra funds even after getting the loan amount they originally applied for.

But here’s the catch: while applying for extra funds, most are unclear whether they should go for a fresh personal loan or simply add a top-up to their existing one.  

You’re all set to sign the dotted line of your personal loan agreement. The prospect is thrilling.  
But let’s hit pause before we get the ink flowing. It’s vital to have clarity in this moment.
 

If you have ever opened your CIBIL report and wondered what those numbers like 000, 030, or 090 are trying to say, you are not alone. Most of us focus on the credit score and miss the one detail lenders quietly study first: Days Past Due.

Think of it as your EMI discipline scorecard. A small delay today can shape tomorrow’s loan decisions. So let’s decode it in the easiest, most practical way..

Many borrowers feel stuck with high monthly instalments, long repayment schedules, or interest rates that no longer suit their financial goals. However, this situation is more common than the borrowers realise.

Loan approvals don’t happen by chance. Lenders study your income stability, credit history, and debt levels closely. For businesses, they go a step further and evaluate the Debt Service Coverage Ratio (DSCR), a powerful indicator of how financially strong and reliable your operations appear 

This is something most of us can relate to: our muscle memory failing us at the worst possible time. Sometimes you end a call instead of answering it, hit Shift + Delete instead of just delete, and lose critical data or files.  

Things could get worse, for instance, when you enter the wrong UPI pin thrice and get your UPI app locked, especially when there is a long queue behind you.  

India’s loan delinquency rate shot up from 3.3% to 3.6% in March 2025. What does this suggest? Borrowers are increasingly defaulting on loan repayments these days. As a result, getting loan approvals has become tougher. Any hint of default risk, and your application is rejected.

To improve their chances, borrowers usually focus on credit score and debt-to-income ratio, since these directly impact creditworthiness. But that’s not all; FOIR also plays a key role.