Reasons in writing, as RBI's Fair Practices Code asks of lenders (simulated)

Statement of reasons for credit decision

Pathway · Demo Lender

Ref PW-CLEAR-REJECTION-507

Model trained 2026-10-05

Decision

Asha, this application was declined with a Pathway score of 507 (approval needs 650). The biggest factor: You are using 97% of your credit card limits. High balances signal stretched finances. If you follow the plan below, you are projected to be approved in about 18 months.

Facility Type:Unsecured Loan

Amount: ₹500,000

Hard Inquiries (6M): 0Low recent inquiry activity

Unsecured facility (₹500,000) with no underlying collateral backing. Risk analysis relies strictly on borrower credit discipline, disposable income, and leverage (FOIR: 62%).

*For this assessment, loan type, loan amount, collateral, and inquiry activity are considered separately from the credit-risk model.

Declined

507

Approval needs 650 · Chance of default in 2 years 44.5%

Principal reasons, ranked

R1Credit card utilisationYou are using 97% of your credit card limits. High balances signal stretched finances.−84 pts
R2Late 30–59 days (DPD)2 payment(s) were 30–59 days past due (DPD) in the last 2 years.−71 pts
R3Late 60–89 days (DPD)1 payment(s) were 60–89 days past due (DPD) in the last 2 years.−53 pts
R4FOIR (EMIs as % of income)EMIs and other fixed payments take 62% of your income (FOIR).−11 pts

Path to approval

1Pay every bill on time for 18 months so past late payments age out (18 mo)
2Bring credit card balances down from 97% to 92% of your limits (1 mo)

Not used by the model: Age · Dependents · Real-estate loans

Projected timeline

Approved in 18 months

Month	With plan	No changes
0	507	507
3	514	507
6	544	537
12	600	593
18	651 (Approved)	644
24	651 (Approved)	644
36	651 (Approved)	644

Money saved by following the plan

Illustrative

The same loan of ₹2,00,000 over 36 months, priced today and after the plan.

Today

Declined by a prime lender

36% a year

High-cost alternative

Monthly payment (EMI): ₹9,161/mo
Total interest: ₹1,29,787

After the plan

Fair tier

18% a year

Monthly payment (EMI): ₹7,230/mo
Total interest: ₹60,297

Projected interest saved

₹69,490

₹1,930 lower monthly payment

Illustrative risk-based pricing, not any lender's actual rates and not an offer of credit. Tiers: score 760+ 10.5% · score 720+ 12.5% · score 690+ 15% · score 650+ 18%. Below score 650 a prime lender declines, so the comparison uses a high-cost alternative at 36% a year.

Timeline certainty

Simulation

400 simulated futures of the same plan, each with its own pace and setbacks.

Best case: month 18
Likely approval: month 18
Worst case: month 18

Months from todayBest case – Worst caseLikely approval

96% of simulated futures reach approval within 36 months.

Each simulated future draws its own pace of paydown and income growth, and may include an income shock or a new late payment. Best and worst case are the 10th and 90th percentiles; likely is the median. A projection, not a promise.

Applicant data used

Monthly income: ₹56,000
Credit card utilisation: 97%
FOIR (EMIs as % of income): 62%
Active loans and cards: 4
Late 30–59 days (DPD): 2
Late 60–89 days (DPD): 1
Late 90+ days (DPD): 0

Assumptions

Plan horizon: 36 months maximum
Card paydown pace: up to 6% points of card utilisation per month
EMI reduction: 5% of today's EMIs per month, 50% max
Income growth: 0.6% per month, capped at +15% in total
Active loans and cards: change by at most 2, effective after 1 month
Late payments: counted over 24 months, assumed evenly spread, age out if every future payment is on time
Not used by the model: age, dependents, real-estate loans

Model

Logistic regression on Kaggle data (Give Me Some Credit schema), test AUC 0.855 (validation AUC 0.857). Reason codes are exact per-feature contributions to the log-odds, relative to the average applicant.

Your rights (illustrative)

You may request a human review of this decision, correct any inaccurate data, and re-apply. This report explains the factors used; the model does not use age, dependents or real-estate loans.

Pathway is a simulation built on a public dataset for a hackathon. It is not a credit decision, not financial advice, and not affiliated with any lender.