A Personal Loan rejection by itself does not directly reduce your CIBIL score. However, the credit enquiry made during the application process may have a small temporary impact. In India, lenders record a hard enquiry when a full application is submitted, regardless of approval or rejection. Multiple rejections within a short period can signal financial stress and indirectly affect future approval chances. The key issue is not the rejection but frequent applications. Borrowers are advised to understand eligibility and address issues like low credit score or high EMIs before reapplying to avoid unnecessary enquiries.