For Quick Alerts
For Daily Alerts

6 Reasons Why Your Home Loan Could Be Rejected


Banks before lending consider few things before approving a loan. They have few parameters and criteria by which they decide on the eligibility on the loan. Here are few points which you should consider before applying for a loan.

6 Reasons Why Your Home Loan Could Be Rejected

1) Frequent job change

Changing job has become a trend in recent generation. Banks lay emphasis on stability in a job and banks do confirm your working place before approving a loan.

2) Defaulters list

If your residential address matches of a defaulter address which has been reported to CIBIL, in such cases chances of loan rejection are higher.

In such cases one can speak to the relationship manager of a bank and they should bring to the notice that you do not have any direct relationship with the previous defaulters ( like tenants)

3) Old building

In case of a home loan, some banks will not fund if the building you are purchasing is more than 20-25 years.

4) Earlier loan rejection

If there is earlier rejection in loan, your data will be stored in the banks data base. This may have a bearing on the current loan you are applying for.

In such cases speak to credit manager and justify, explain reasons for your default.

5) Previous loans

If you have too many loans and your income is not upto the bank's criteria, banks may find it difficult to approve. In cases like this, if you have an existing personal loan and again you want to go for home loan. In such cases your income should be higher or try to repay your existing loan.

6) Bad credit rating or Cibil score

Your Cibil sore maybe bad, because of an earlier default or delayed payment. In this case the bank is likely to reject your application.

Read more about: loan banks home loan
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more