2. Your residential address is on the defaulter list!

You may find it strange but it true. If you live under a roof once from where a resident’s default on loan payment was reported to CIBIL, then the chance of your loan request will increase.  Now you may why? Let me tell you, as the place where you live will find a match with the residential address of the defaulter. Due to which banks with consider you non-eligible for loans.

Relax! As you don’t have to change your house as your residential address is on the defaulter list. All you require is to discuss about this issue with your relationship manager at the bank. If the was defaulter was the previous tenant, tell the bank that you do not share a personal relationship with him. But if the defaulter is one of your family members, stress upon that he is not financially dependent on you.

3. Your profile doesn't fit into the bank's internal policy!

Each bank functions according to their internal policy. When you approach a bank with your loan application, it will first verify your credit profile or your geographic areas whether it is listed in their policy guidelines as negative for lending. And in case profile doesn't fit into the bank's internal policy, it will not fund your loan.

To fix this issue, you can convince the banker by providing proof of your repayment ability. For this you can provide additional security over your loan amount either in the form of a guarantor or in the form of insurance policies, fixed deposits, collateral etc.