Home Banking 8 reasons for rejection of your Home Loan application?

8 reasons for rejection of your Home Loan application?

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8 reasons for rejection of your loan application

Here are eight reasons for rejection of your loan application from bank


Debt reduction by other banks

Some people are applying for multiple banks at the same time. However, if your loan is rejected by a bank, it can affect your credit scores, which is why other banks have rejected the debt. It is good to wait for another bank to answer why you know why your bank is repudiating debt and correcting it.

New or unstable job

Repayment of the lender requires that the lender is the most important, and you must ensure that you have timely repayment capabilities when distributing debt. The fixed income for a salary holder is determined by the stability of the job. “Payment of housing loan is usually the norm for 15-20 years, and the stability of future income is the norm that is required to be assessed at the time of loan grant. For example, if the borrower has only eight months of employment, the contract is renewed or will provide the facility that the borrower will provide alternative employment. Whether it has qualifications to be heard Natural for the creditor, “says Soota.

This is the same story when jobs change. The buyer may give a higher level of income, which can have a negative effect on the lender. It is usually suggested not to change your job if you plan to take a home loan in the near future. In fact, the employee’s financial strength is considered to be one of the considerations, Sukanya Kumar, founder and director, retail lending, housing loan consultancy. “People working in the proprietorship are having less than 50 employees and those who do not have a provident fund are facing difficulties in getting home loans,” Kumar added.


Age is one of the most important factors considered by the lender at the time of lending. Generally, they have a maximum limit of 60-65 years for a minimum age bracket of 23-24 years and loan applicants. A 22-year-old who works for the past three years applies for housing loans and qualifying criteria required by the lender at least 23 years, at least two years of continuous work experience, all the lender has rejected such an application

Apply with SPOUSE / Parentals

If you want to get a home loan for a large sum, your spouse’s income clubs are a good choice. But when the banks, spouse, father and son’s clubs allow it, it does not extend to every family member. Some banks are skeptical about combining siblings, as in the case of dispute, EMI may be delayed. Revenue clubs are not allowed to any other relative. Also, an applicant cannot be a small one.

The position of the property

Banks also take their decision to expend debt based on the project’s base. Take, for example, Noida Extension, in 2011 due to clearance and acquisition issues, many projects have suffered. As a result, many public sector banks have stopped issuing fresh loan restrictions in the region, according to news reports. “If all lenders have limits to geographical spaces, the debt will be reduced if the value of the property is less than the technical value of the properties in the remote positions may be lower than the cost of the purchase, the banks are risking the risk of funding in less developed areas based on Case Takes.”

Assess the value of the property

You should make sure you’re buying a house at a price near market price. This is important because the bank does the asset’s value and gives up to 80% of the value of the property after considering other factors, such as your repayment capabilities.


The property does not have a clear and soldier title, or issues related to permission from the relevant authorities, general banks or housing finance companies are entitled to the title and approval until the customer finds another property until the loan grant is valid. So, before buying a property, you must make sure that you are not involved in any dispute.

Lack of payment capabilities

Banks have confirmed your repayment capabilities before distributing loans. It will depend on the levy revenue in your hand after paying the existing EMIs. Generally, banks typically offer a loan of up to 50% of the lender to a monthly income. So, first assess your repayment capabilities before applying for a loan.

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