Top 5 Reasons Why Your Home Loan Application Got Rejected

February 15, 2018

Top 5 Reasons Why Your Home Loan Application Got Rejected

It is disappointing to learn that your home loan application has got rejected. But you have a right to know why. Sometimes the reasons given by the banks for rejecting home loans are logical, and other times they may seem unfair. Remember, you don’t have to take “no” for an answer.

Loan lending is a competitive business, and some banks of India are more flexible than others. Credit unions and community banks may take more time to analyze your particular situation.

Below mentioned are the top 5 reasons why your home loan application got rejected

home loan application

imagesource

1.Poor/Low CIBIL Score

One of the most significant reasons that home loan applications faces rejection. Borrowers tend to overlook this, unaware of the fact that CIBIL score plays a very important role in getting loan approvals. The score below 750 is not considered good.

A bad credit history is a result of late repayments, missed repayment schedules are another reason for loan rejection. Your poor credit score will remain unflattering if you remain perilously close to the credit limits on your cards ore have a high percentage of unsecured loans.

2.Not Income Stability

Hopping jobs is not considered good. Especially; when you are applying for significant loan like home loans. Changing too many jobs reflects poor on your home loan application. Banks consider job stability as one of the focused and primary criteria for approving a loan.

Banks insist that the borrower should have a stable job in a company for three years preferably, in order to be eligible for a home loan. If sometimes, the applicant’s company, although reputed seems unstable, the bank reserves its right to reject the loan.

3. Age Plays A Vital Role

Home loan applications often gets rejected if the borrower’s age is near to the retirement age. The banks as well as private lenders are bit hesitant to offer home loans to such borrowers.  Because; they assesses your repayment capacity to be poor or near to zero, in some years.

However; some banks may be willing to offer short-term home loans. Short term loans means small loan tenure and bigger installments which may take away the comfort of availing a home loan in the first place. Therefore; home loan borrower’s age plays a very important role in home loan rejections.

4. Having No Credit Is Also Not Good

A majority of Indians are averse to the idea of living on credit therefore; do not prefer getting credit cards or loans. If you belong to in the same category and think that you will have a high Cibil score, you are mistaken. Because; having no credit history or a single type of credit shows your inability to take up debt responsibly.
In order to have a good CIBIL score, it requires having good mix of credit history to meet the repayment criterion of the same.

5. Not Provided Required Information/ Missing Documents

The banks or private financial lenders may have found inconsistencies between the income listed on your home loan application and the information obtained from your employer. Also; incomplete documentation, and missing information gets you home loan rejections. These issues requires resolving before you can go ahead and apply for home loan.

Make sure your home loan application is accurate and complete before submitting it to the bank.

Apart from the above mentioned, there are obvious reasons like income tax filing, previous loan rejections, loan guarantor to be defaulter, address on defaulter’s list, unpaid dues, mismatched signatures, no NOC on previous loans and being a fresh home loan applier could be the reason for your home loan rejections.

Talk to the experts, before you start for applying for your home loan. The experts will guide you in the right direction and helps you get all the documentation in line.

Related articles

imagesource

February 15, 2018

Connect with Service Provider

Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities

Latest Posts

September 26, 2022

What Is a No Deposit Casino Bonus?

Casino bonuses that online tik tok video download are no deposit are bonuses

Read More  

September 25, 2022

How do you choose the tiktok account downloader most effective casino game

The choice of the most enjoyable casino game

Read More  
Tips On How To Write A Research Paper In English

September 24, 2022

Remember, a thesis statement is not merely a summary of your findings. It should present an argument or perspective that

Read More  
What Is A Fast Abstract Of Every Of The Sixty Six Books Of The Bible?

September 21, 2022

This guide teaches you tips on how to make a great summary of a e book. You can browse all

Read More  
Affordable Residency Private Assertion Writing And Modifying Service

September 20, 2022

At EssayEdge, we understand that residency functions are not the same as medical school purposes. One of the principle personal

Read More  
Best Essay Writing Services By Prime Uk Academic Writers

September 20, 2022

If the customer who placed an order is at present on a finances, we will offer a versatile system that

Read More  

Latest Events

CLO Engage Summit

Date: 10 January, 2019 - 10 January, 2019

India Investment Conclave

Date: 11 January, 2019 - 11 January, 2019

11th Global Intellectual Property Convention

Date: 17 January, 2019 - 19 January, 2019

PanIIT Conclave 2019 Artificial Intelligence

Date: 18 January, 2019 - 19 January, 2019

Mobile And Digital Marketing Summit

Date: 27 November, 2018 - 27 November, 2018

Emerging HR Summit

Date: 18 December, 2018 - 19 December, 2018

PITS - Pharma IT Summit

Date: 28 November, 2018 - 28 November, 2018

World AI Show - AI, MI & Robotics

Date: 22 November, 2018 - 22 November, 2018

TEDx IIFT Delhi

Date: 21 October, 2018 - 21 October, 2018

Decathlon India Run

Date: 14 October, 2018 - 14 October, 2018

5 thoughts on “Top 5 Reasons Why Your Home Loan Application Got Rejected”

  1. Great blog .
    I have plans of buying apartments in Thrissur, taking an home loan from the banks. I have already started doing research to collect all information related on home loans. There are various bank offering home loan on different schemes which needs to be studied thouroughly before you take up decision. I do not want my loan to get rejected at any cost due to lack preparation or any silly legality issues. While I was researching on the net, I found few blogs very useful and informative. So thought of sharing them here as anyone planning to apply for home loans like me, can also benefit out of these information.

  2. Thanks for the information.
    When you take a loan for buying any Flats for sale in Kottayam or any other location,always check the following points-
    Prefer a short-term loan
    Go low on interest rates
    Pay more as you get more!
    Compare interest rates

  3. We gives out both business and personal cash no collateral required. term cash of all amounts I think you have come to the right place. We offer Cash at low interest rate of 2%. Interested people should please contact us on For immediate respond application Contact us via email Contact Us At : abdullahibrahimlender@gmail.com
    whatspp Number +918929490461
    Mr Abdullah Ibrahim

  4. Dear Sir / Madam,

    We offer all kind of loans – Business Loan / Real Estate Project
    -Financing

    We are a comprehensive financial
    services firm committed to helping our clients improve their
    long-term financial success.

    Our customized programs are designed to help grow, protect, and
    conserve our client’s wealth by delivering a superior level of
    personalized service.

    We’re Investment/Finance firm that specialized in project funding
    & General financial service offer.Our principal function would be
    assist you in complete financing through our reputable Lending
    Institutions.

    We are open to having a good business relationship with you. We
    are currently interested in funding viable businesses,
    investments or projects in the following areas of interest:

    * Starting up a Franchise
    * Business Acquisition
    * Business Expansion
    * Capital / Infrastructural Project
    * Commercial Real Estate purchase
    * Contract Execution
    * Trade Financing etc.
    * Want to be an Agent / Broker?

    – Intermediaries/Consultants/Brokers are welcome to bring their
    clients and are 100% protected.

    We encourage you to contact us and learn more about the loans
    service we offered.

      FOR IMMEDIATE RESPONSE AND PROCESSING OF YOUR LOAN REQUEST WITHIN 2 WORKING DAYS,
    Contact us directly through this email: lydiamooncooperativeloan@gmail.com

    Contact us with the following information:

    Full Name:____________________________
    Amount Needed as Loan:________________
    Loan Duration:_________________________
    Purpose for Loan:______________________
    Date of Birth:___________________________
    Gender:_______________________________
    Marital status:__________________________
    Contact Address:_______________________
    City/Zip code:__________________________
    Country:_______________________________
    Occupation:____________________________
    Mobile Phone:__________________________

    Send your request for immediate response to: lydiamooncooperativeloan@gmail.com

    Thank you.
    LYDIA MOON
    Director.
    LYDIA MOON CO-OPERATIVE LOAN COMPANY
    Email:lydiamooncooperativeloan@gmail.com  

Comments are closed.

-->