does loan rejection affect cibil score

No, the rejection of a loan itself does not directly affect your CIBIL score because lenders do not report the outcome (approval or denial) to credit bureaus. However, the process of applying for a loan initiates a 'hard inquiry' on your credit report. This hard inquiry is recorded and can slightly and temporarily lower your CIBIL score by a few points. Submitting multiple loan applications within a short timeframe results in multiple hard inquiries, which could signal you as a credit-hungry borrower and negatively impact your score.