in-card Post your Answers

What are the major reasons behind the rejection of a Home Loan application?

in-card Responses

Buying a home is likely to be one of the biggest investments you will ever make in life

But this dream is very difficult to be realized by a middle or lower middle class person because of the rocketing prices of real estate and the growth in demand for houses. Also, it is very tough for a normal person to get the loan application sanctioned, if all his information and documents are not in place. There are a lot of reasons as to why a home loan application gets rejected. The most common reasons for home loan application rejection are as follows:. If you have recently switched a job Most banks in India approve home loans for people who have been in their current job for long as they look for stability in the person. Most banks do not approve a home loan if you have recently switched your job. Home loan applicants who have been in their job for at least 2 years are eligible to apply for a loan. Banks are more inclined in approving such applications readily. Poor CIBIL score CIBIL is the most popular credit bureau used to evaluate the credit worthiness of a person. If you have ever defaulted on any credit card payment or might have been missing paying EMI’s on time for a personal loan, thinking this does not affect anything, then you are wrong, as this leads to a drop in your credit score. If your credit score is poor, then the chances of you getting a home loan are much reduced. Existing debt If you already have a pending loan, then getting another loan becomes difficult until the previous loan is paid completely. If you are already in too much debt then it is better not to even apply for a new loan. Moreover, the applicant shall look for a NOC to show a clean debt record. If you have been loan guarantor Also, if you are the loan guarantor for someone else, then the probability of you getting a loan diminishes, until that loan is fully repaid. If the property is not authorized If the property you are looking to buy is not authorized by the government or local administration body, then the probability of you getting a loan is almost NIL..

Check your Free Credit Score Online

As part of our efforts to make the end consumer services affordable and available at price points which are favourable to the customer, CreditMantri may receive fees / commissions from lenders.

CreditMantri ™ is a registered trademark of CreditMantri Finserve Private Limited. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Mantri are the property of their respective trademark holders.

CreditMantri was created to help you take charge of your credit health and help you make better borrowing decisions. We support customers with every kind of credit profile - those who are new to credit and have a minimal or nonexistent record; those who have a problematic history; and those who already enjoy a healthy profile. If you are looking for credit, we will make sure you find it, and ensure that it is the best possible match for you. How do we help you? We enable you to obtain your credit score instantly, online, real time. We get your Credit Score online and provide a free Credit Health Analysis of your CIBIL or Equifax report. Based on the analysis, we help you discover loans and credit cards best suited for your credit profile. We help you understand your Credit Profile, Credit Information Report (CIR) and know where you stand. We are a one-stop shop for all your credit needs. We make it easy for you to browse through and compare the various financial products on offer on the market; access our free and user-friendly online tools; and finally, enjoy a stress-free application process with quick approvals. We ensure that you have a better shot at getting an approval for a loan or credit card you apply since we match the lender’s criteria to your credit profile. We help you avoid loan rejection by carefully determining your eligibility and matching you with the right lender/product. We achieve this with a cutting edge combination of data science and technology that ensures that both lenders and borrowers have a transparent common platform to make their decisions. We treat your data with the utmost confidentiality and will never share or sell it to anyone. That is our CreditMantri guarantee. Our dedicated and best-in-class customer service will go the extra mile (or two) to support you on every step of your credit journey. Our 1 Million happy customers are our best testimonial.

CreditMantri is India’s No. 1 site for Credit Analysis and Free Credit Score Online. Let us help you take control of your credit goals and unlock the door to your financial freedom.