Indian founder of ₹1.15 lakh crore startup says bank denied him home loan, classified him as ‘high-risk’ borrower

Indian Founder of 1.15 Lakh Crore Startup Claims Home Loan Rejection

Indian founder of 1 15 lakh – Pravin Jadhav, the Indian founder of a 1.15 lakh crore startup and CEO of Raise Financial Services, recently expressed frustration over a home loan denial by a major private bank. The decision, he argued, stemmed from the bank’s classification of him as a ‘high-risk’ borrower, despite his company’s significant valuation and proven financial stability. Jadhav’s experience highlights growing concerns among entrepreneurs about how traditional banking systems assess their creditworthiness, particularly in the context of their startup’s success.

Entrepreneurial Risk vs. Financial Credentials

Jadhav emphasized that his banking relationship with the institution had spanned over two decades, during which he consistently maintained a credit score exceeding 800. His assets, which placed him in the top 0.1% of the bank’s customers, were deemed sufficient to secure a mortgage. Yet, the bank still hesitated, citing his entrepreneurial status as a potential risk. “Even with a strong credit history and substantial assets, the bank saw me as a gamble,” Jadhav said in a recent post. This contradiction underscores the challenges faced by founders in proving their financial reliability to traditional lenders.

“Founder’s life is hard! My home loan application got rejected by a top private bank – just because I am a founder,” Jadhav wrote, adding that the bank was willing to fund his employees’ homes but not his own. “It feels like I’ll have to live in the office for life,” he quipped, capturing the sentiment of many entrepreneurs who face similar hurdles.

Industry-Wide Echoes and Systemic Issues

The post sparked widespread discussion on social media, with users sharing their own struggles. Abhilasha Purwar recounted her experience: “4 years ago, I tried buying a 1.65 crore house with 30% down payment, solid credit, and a stable history. The loan was denied because I was a founder running a pre-profit company, even though I had raised 15x the loan amount for salaries.” These anecdotes reveal a systemic issue in the banking sector, where the entrepreneurial label often overshadows tangible financial credentials. Jadhav’s situation also reflects a broader trend, as many founders report being treated as high-risk despite their companies’ market success.

Raise Financial Services, the parent company of the popular stock trading platform Dhan, became a unicorn after securing $120 million in Series B funding in October 2025. This valuation of $1.2 billion, or roughly ₹11,551 crore, highlights the company’s growth and Jadhav’s ability to attract significant investment. However, the rejection of his personal home loan application suggests that even with corporate success, founders may struggle to secure personal financing. “Banks understand salary risk better than founder risk, even when the numbers disagree,” another user remarked, echoing Jadhav’s frustration.

Broader Implications for Startup Ecosystem

The case of Pravin Jadhav raises questions about the fairness of lending criteria for entrepreneurs. While banks prioritize risk mitigation, their reluctance to extend credit to founders could impact their quality of life and ability to manage personal finances. For a 1.15 lakh crore startup, such a decision may be seen as symbolic, but for the founder, it’s a personal challenge. “It’s not just about the money; it’s about being treated as a risk when I’ve consistently proven my financial acumen,” Jadhav explained. This sentiment is shared by many in the startup ecosystem, where founders often balance business and personal obligations.

Experts in the fintech sector argue that banks need to adapt their risk assessment models to better accommodate founders. While traditional metrics like salary and credit history remain critical, they may not fully capture the financial stability of a founder who has built a successful business. “Entrepreneurs are often the backbone of innovation, yet their personal financial profiles are undervalued in the eyes of lenders,” said a financial analyst. The conversation around Jadhav’s situation could pressure banks to revise their policies, ensuring founders aren’t unfairly penalized for their professional roles.

Meanwhile, Jadhav’s rejection has reignited debates about the disparity between corporate and personal finance in India. Many founders, like him, rely on their companies’ growth to fund their personal needs, making the ability to access home loans a crucial milestone. “For a founder, securing a loan isn’t just about property—it’s about confidence and stability,” he added. As the startup ecosystem continues to expand, the need for more flexible lending options for founders becomes increasingly apparent. The Indian founder of 1.15 lakh crore startup’s experience may serve as a catalyst for change in the banking industry’s approach to entrepreneurs.