Home Loan Got Rejected? Here's Why


BENGALURU: Buying your own home is a dream you could soon realize. Availing a home loan is quite simple these days if you have a good salary and all documents are in order. When a home loan application says ‘no’, them just think it as ‘try again’ because your home loan is just an approval away, according to businessinsider.in.

sdPoor Credit Score and Credit History:

Basically a credit score ranges from 300-900. The closer you are to 900, the more confidence the credit institutions will have in your ability to repay the loan amount and hence, better the chances of your application approval while buying a home. Anything above a score of 750 is considered a good credit score and usually all banks look at a good credit score as this is one of many checks that they do before approving a loan.

Bankers additionally look at the status of previous loans and the payment history on such loans. A previously settled or a written off loan is likely to impair the ability to avail more loans.

sdLender finds out that you have taken another home loan in between:

Your credit worthiness is a pivotal condition in your loan disbursement. Many lenders do double-check on your credit report a day before disbursing the loan. If you have defaulted in any payment in between with any other lenders or availed another loan which reduces or nullifies your loan eligibility, they will factor it.

In a circumstance where you still have the eligibility but the lender has a policy of not funding a third home loan and you have borrowed one in between making this one the third, they might refuse to disburse.

Read More: NRI Remittances To India Surge 25 Pct Following China's Yuan Devaluation

SBI Expects Jan-Dhan Accounts To Break Even Next Year