Lots of people in India avail home loans as they can’t arrange the money required for making a house of their own. They are forced to turn to home loans. There are lots of obstacles that you have to face while availing a home loan. Sometimes, your application for the home loan gets rejected. It could be for any of the reasons listed below.
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9 Reasons Why Your Home Loan Gets Rejected
1. Unpaid Dues
The bank checks your Credit Information Report (CIR), when you apply for a home loan. Banks look at timely payments of dues and EMIs on any other loan availed. Timely payments of past loan dues may help you get the home loan sanctioned.
2. You have other loans to repay
If you have availed other loans like a car loan or a personal loan, banks believe this will affect your repayment ability. Chances are you could default on the home loan. Banks prefer to err on the side of caution and will not sanction your home loan.
3. Your Address is on the Defaulter List
If you have moved to an address which was previously rented out to a person who had not paid his loan dues on time, you could be in some trouble. If the previous tenant or owner had given the same address in the bank records, the address could be listed in the database of defaulters. Banks might refuse to sanction your home loan.
SEE ALSO: Tips to apply for a home loan after 45
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