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I created a local users in my server and added the user in a custom SharePoint Group.But If I login to the site using this local user, Im getting "Error: Access Denied".

And when I add this user to the default SharePoint Group like "Site Members" I'm able to login to the site.

Please provide any solution to get me out of the error.

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If something in that page which you will load after login will contain information to which user don't have access the you will get thiss error it will happen also if there is some sort of webpart which asks for info which user can't access. Recheck that your custom group has all needed permissions to load all needed page components. Before asking for data you need to check if user has permissions otherwise you will get this error when loading page.

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Is this a publishing site, have you made sure that master page, current page all are checked in, published and approved.

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May be the logged in user doesnt have enough permissions to access the site. once check your custom group Role Defition .

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