Most Common Problems Home Loan Borrowers Face
3. Desired loan amount not sanctioned
As said earlier, getting a home loan is not that easy as there are many hiccups in this procedure. According to the bank, one criterion that a borrower should possess is a good repayment capacity in order to sanction the desired loan amount. Also, there are many other criteria that come into picture, when the bank decides on the maximum loan amount a person can get. Others might include other unpaid loans, financial history, monthly income with the borrower, past repayment record, credit card usage history, bounced checks, average balance with the banks, continuity in present employment, total years in employment and nature of employment. The bank clubs all these factors and then decides on whether it will be able to recover its money from the borrower in the future. Also, if you have sufficient funds in provident funds and LIC policies you can keep them as collateral and request the bank to sanction your desired amount.
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