Right now home loan interest rates are less than 7%. In such a situation, this may be the right time to buy a house or property. But sometimes loan application can be rejected due to reasons like credit score (CIBIL score) or applying for more loan. If you too are going to apply for a home loan these days, then we are telling you about 7 such things that can cause your application to be rejected.
Banks and NBFCs usually provide loans for up to 30 years. But if you are old, then you should take a loan for a short period. According to the rule of many banks, loan repayment must be completed before the applicant attains the age of 75 years. In such a situation, if you are close to 55 years of age, then you should not apply for a home loan for more than 20 years.
Weakening credit score
Many times when a home loan, the bank refuses to give a loan due to a weak credit score (Cibil score) or lack of regular income. Apart from this, it is also seen that due to these reasons you are not able to get as much loan as you need. In such a situation, we are telling you about some such things today, by adopting which you will be able to get a loan easily.
Do not loan too much
Apply more loan-to-value (LTV) ratio can make it difficult for you to take a loan. This means that in order to buy a house you have to keep your contribution high. Suppose your house price increases by choosing a lower LTV ratio, increasing the buyer’s contribution to the property. This reduces the risk of the bank. At the same time, low EMI increases loan affordability. This will increase your chances of getting a loan.
Fix Obligations to Income Ratio Excess
When we apply for a loan in the bank, the bank also looks at the Fix Obligation to Income Ratio (FOIR). This shows how much amount of loan you can pay each month. The FOIR shows what percentage of your already going EMI, house rent, insurance policy and other payments is the current income. If the loan donor incurs all these expenses up to 50% of your salary If they are, they can reject your loan application. Therefore, keep in mind that the loan amount should not be more than this. To get a bank loan, it is necessary to have the right fix oblation to income ratio, loan application can be rejected if it is more than 50%.
If you change jobs quickly, then this is also not right for your credit card application. Repeated job changes are considered a sign of unstable careers and hence giving credit cards to such individuals is considered a bit risky. This reduces the chances of getting a credit card.
Banks look at the repayment capacity of a person before issuing a credit card. To know this, banks demand Form 16 or salary slip of that person. If his or her annual income does not fall within the purview of the bank, then that person’s application is rejected.
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No credit history can cause problems
Just as a bad CIBIL score can cause a credit card application to be rejected, in the same way a no credit history (ie, there is no record of taking and repaying a loan in advance) can also be rejected. Generally people believe that if there is no loan already, the credit score will be fine, but it does not happen. Banks also decide to give loans based on their ability to borrow and repay. If you already loaned
If you have not taken, then apply for a loan in the bank where you have a savings account. The bank can give a loan after looking at the records of your savings account.