Reasons for home loan rejection
2 min read
Lenders may reject home loan applications if they aren’t convinced of the borrower’s financial history and capacity to repay, if they find issues with the property or application, or for some other internal reason. Here are some common reasons why home loan applications may be turned down:
- You have dues pending (missed EMIs and credit card bills)
- You are to close to retirement, age-wise
- Your current address was used by a previous defaulter and entered your lender’s database
- You’ve changed too many jobs quickly and don’t have sufficient job stability
- You don’t have the minimum CIBIL score for home loan (750 or above)
- You are a loan guarantor to a defaulter
- The residential property is very old, has a low resale value, hasn’t been constructed by a reputed lender, or has issues related to layout, title, or documentation
- Your CIBIL report indicates previous loan rejections
- You haven’t filed your income tax return (ITR) in the recent past (2 years or so)
- You have given your landline number, not mobile number, and aren’t available for verification
- The signatures on the home loan application, document copies, and lender records do not match
- You are a fresher or an entrepreneur who isn’t yet well-established
- You haven’t disclosed that a minor has rights on the property
- You don’t possess the NOC (No Objection Certificate) of a previously-closed loan
- You haven’t paid telephone bills or other bills
Also read: Know about home loan process
Read More
Read Less
