Home Loan Tips: Home loan application getting rejected again and again? Are these 5 reasons responsible?

Vineet, a resident of Noida, was trying to get a home loan for many days, but his application was getting rejected. Vineet could not understand why this was happening, even though all his documents were in order. When Vineet investigated closely, he found out that the project and area for which he was applying for the loan had been blacklisted by the banks.

If, like Vineet, you are also applying for a home loan and it gets rejected again and again, then we are telling you what could be the reason for this.

Age can become a big factor in home loan
Before giving a home loan, any bank or non-banking finance company (NBFC) checks what are the chances of getting its money back. This is the reason why financial institutions prefer to give loans to the youth rather than the elderly.

If your age is more than 50 years, then the chances of your home loan application being rejected are very high. Home loan installments are usually made for 15 to 20 years. In such a situation, the bank feels that if any untoward incident happens to the elderly, their loan may get stuck. Many times the elderly do not have any fixed source of income after retirement.

This is the reason why banks give more preference to youth in giving loans, especially to those between 30 and 40 years of age.

Do not play with the information in the application
Whenever you apply for a home loan, enter all the information correctly. If you make any mistakes, your application will be rejected and will be recorded in your records. In such a situation, you may find it difficult to take a loan from other banks or financial institutions. Also, make EMI according to your salary.

If the bank does not see a match between your income and the loan amount, then it will not waste a moment in rejecting your application.
Are you 'Credit Hungary' in the eyes of the bank?

If you are repeatedly inquiring about a home loan and are not taking the loan, then there is a greater possibility that when you go to take the loan, your application may get rejected. When you apply for a home loan, financial institutions check your credit score thoroughly to know what your record is in terms of loan repayment.

If banks are checking your credit score frequently, your image may develop into that of a 'credit-hung' person. In such a situation, inquire about the loan only when you want to take the loan.

Apply at one place at one time
Apply for a home loan with only one financial institution at a time. When banks or NBFCs check the credit score, their details are recorded in the credit report. If you approach multiple banks or NBFCs for loans at the same time, they will come to know. Due to this, financial institutions may form a negative opinion about you and then your home loan application will be rejected.

No blacklisted projects and credit history

Many times banks and NBFCs blacklist some projects and areas. They feel that there is a higher risk of debt entanglement in those projects and areas because their track record is not good. If you apply for a home loan from such projects or areas, there are full chances of it getting rejected, as happened in the case of Vineet.

At the same time, even if you do not have any credit history, your loan application may be rejected. In this situation, the bank is not able to guess what your record is in terms of loan repayment.

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