Loan Application: Banks may refuse to give loan due to reasons like not having good CIBIL score, not having a bank account.
Often, even after all our preparations, our loan application gets rejected many times. What could be the reasons behind this? It is very important for everyone to know this. It has to be understood why banks refuse to give loans. Sometimes due to small mistakes, the loan application is rejected.
But, there is nothing to worry about. Here we are telling you what you should do if your loan application gets rejected.
Due to these reasons, loan application is rejected
If you have taken an old loan, and have not yet repaid it, then your application may be rejected.
Many people do not have a good CIBIL score. The CIBIL score is between 300–900 and is considered good 750 or more. This makes the customer considered a trustworthy and risk-free debtor to the lender.
If the CIBIL score is better, the interest rate on the home loan can also be reduced for the customer. Poor credit rating can also cause your loan application to be rejected.
Because of this, the bank feels that your income is not enough. Banks want to know whether the applicant has the ability to repay the loan or not.
This is the reason that the bank conducts intensive scrutiny of the income and bank account of the applicant. If your income does not match the bank’s standard, then banks can refuse to give you a loan.
Many times not having a bank account is also a big reason. In some cases the company or job profile is weak again.
Difficulties faced in getting a home loan
Many people are unable to get a home loan. There are many reasons behind this. Often the loan gets rejected due to legal reasons. At the same time, if someone is close to retirement, banks are reluctant to give loan, because in such cases they are at risk.
Apart from this, at times the map of the location of the house is not approved.
Take these measures
If your spouse is also working and their CIBIL score is good, then their name can be added as a co-applicant in the application for a joint home loan. This will increase the chances of getting a loan from the customer.
If the bank refuses to give loan on the basis of credit rating, then take a report from the credit rating agency. Because sometimes there can be a mistake in the rating. If this happens, inform the credit rating agency.
This is how you will easily get an emergency loan
If you cannot get a loan, then there are other ways through which you can take a loan. For example, gold, mutual funds, shares, non-banking financial company, credit card loans can be taken.
Your PPF account can also help you in any emergency.