The dream of owning a house can now be fulfilled with ease due to the ever booming market of home loans. Although relatively easy to obtain in this present day and age, there are criteria that banks look at before they approve a housing loan. Following the list mentioned below will ensure that you don’t have your home loan rejected.
Documentation – The first thing the bank looks at is the documentation that you have provided. This is arguably the most important process for the bank when it comes to approving a home loan. Even a slight discrepancy in your documentation may result in your home loan being rejected.
Credit history – Your credit history is what determines your credit score, and your credit score is one of the major criteria that banks look at before approving your home loan. A low credit score is almost certain to get your home loan rejected. Not only that, a rejection in your home loan will deplete your credit score even further, making it harder for you to get future loan applications approved.
Your income – Your income plays an important role in your home loan approval process. The bank processes your income with regard to your loan amount and accesses whether you will be able to pay off the loan on time. If the bank feels that you may not be able to pay off your loan, your application will certainly get rejected. One must always keep in mind their repayment capacity before applying for a home loan.
Debts – In the event that you have other debts at the time of availing a housing loan, the chances of your loan getting approved reduces drastically. This is simply because that it is more risky for a banker to lend out money to someone who is already committed to a loan.
Age of the borrower – The younger you are, the more likely it is that your home loan application is approved. This is so because a younger applicant has more time to repay a loan as opposed to an older applicant. For example, an applicant that is 55 years old may have only 5 – 10 years to pay off a loan, while an applicant that is 30 years old has a relatively longer time frame to pay off his debts. Again, one must figure out his/her repayment capacity before applying for a home loan.
Credit utilisation ratio – This is defined as the amount of credit used in comparison to your total credit limit. The higher your credit utilisation ratio, the lesser your chances of obtaining a home loan. One must always ensure that their credit utilisation ratio doesn’t exceed a particular limit, depending on financial needs.
EMI on the loan – Banks make sure that the EMI payable on all the loans you are currently paying off doesn’t exceed 40% - 50% of your income. If the EMI on your home loan goes beyond this percentage, chances are that your application may get rejected.
Mismatched signature – In case there is a discrepancy in your signature, your home loan is likely to get rejected. This is a criteria that banks never overlook.
Understanding the points mentioned above and planning your application process beforehand will eliminate the risk of your home loan rejection to an extent. Always remember, a rejection in your home loan application only makes to harder for future loans to get approved.
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I have taken Home loan directly through Corporation Bank .I have applied for the loan amount of 12 lakhs for the tenure of 18years .More documents collected for this home loan and got the loan amount on time and it was really sufficient .There was no drawbacks faced so far .I am satisfied with the service .
I had applied for home loan with HDFC limited on few months before, they have sanctioned a loan for 22 lakhs but due to some problem of my builder from my end I kept on hold for the loan process. They have detected for the processing fee of 11 thousands but they refunded 9 thousands rupees. The tenure of 15 years. Interest rate was nominal of 8.55%.
With HDFC limited I have taken home loan on 8 months before which was processed through them directly. They have approved for 8 lakhs but as of now I have taken only for 5 lakhs remaining 3 lakhs I will get later from their end. Due to shop will come in commercial loan so I have split the loan amount to get it. For the tenure of 15 years. The processing fee for 5000 rupees. The rate of interest 8.8%, they have sanctioned the loan within one month.
I have availed Home loan directly through Punjab National Bank .The rate of interest and the processing fee was very high ,I have got the loan amount on delay basis and i have applied for 26 lakhs for the tenure of 15 years.I have not faced any difficulties until i have received the loan .
SBI Home Loan is excellent because I've a salary account with them. They offered me a interest rate of 9.5% approximately. I took the loan amount of Rs. 23 lakhs so far i have got only Rs. 16 lakhs since my building is under construction. My EMI is not yet started. They sanctioned the loan in 2 working days.
SBI is a best bank and they had a better option. There is only simple documentation required and executive came to my place for collecting all the documents. I got the loan within 7 days. SBI did not taken any processing charges and they gave better and cheap interest. They take minimal time and better response from the customer care so i had chosen SBI for my home loan.
My home loan was purchased from Central bank of India. The branch offer was approved the loan immediately and they had a good behavior with the customer. I got the better clarity about the loan process as well as the rate of interest in central bank of India is less than compared to others so i have chosen this bank and the Branch Manager helped me in a better way.
From DHFL I have taken a home loan almost more than a year. One of my cousin's friend working there he recommend to apply for a home loan. The process was smooth and sanctioned a loan within 6 days with sufficient amount of 20 years. The rate of interest was high.
ICICI bank has provided me a home loan at the time of i want on a immediate basis. Since the necessity is over they have provided me a timeliness loan. I taken the loan amount of Rs. 10 lakhs and the have charged me a higher interest rates which i'm not comfortable with.
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DIVYESH PRATAPBHAI FERFA
Reviewed on Oct 05, 2019
I have balance transfer for a home loan with existing finance to HDFC LIMITED. One month before only I have a transfer of a loan. They have outstanding amount of 10 lakhs for the tenure period of 10 years. The rate of interest is 8.6% only for mortgage charges for 8 thousands need to pay for it.
I have taken a home loan with SUNDARAM FINANCE on 10 years before which was processed through them directly. The amount which was given for 13 lakhs for the tenure period of 20 years. There was lot of issues I faced with them customer service is not good response. The rate of interest was high of 14% compare to other.
I have taken home loan directly through State Bank Of India .The rate of interest and the processing fee was nominal ,I have got the loan amount on time and got a clear picture about the loan process ,I have availed this loan for the tenure of 20 years .I have completed only 2 years of EMI so far .,
I have taken Home loan directly through Central Bank OF India ,I have got the loan on exact time ,The rate of interest and the processing fee was nominal ,I have got all the details about this loan very clearly through bank agent.The process was very easy and still this loan is active .
Nearly 11 years before I had taken a home loan with STATE BANK OF INDIA which was processed directly to them.The loan amount was sufficient for the tenure period of 15 years. The rate of interest and processing fee are nominal. They have sanctioned a loan within few days and the process was good.
I have just applied the home loan from Central bank of India. I had a reference over there hence i applied the home loan from Central Bank of India. Documentation process was hassle free. They have offered me a interest rate of 10.1% and the processing fee was 1% of the interest amount +18% GST charges. They have dispatched the loan 20 days. The staffs are so friendly
HDFC was the only bank which is offering for the home loan in the area where i have purchased the house so i opted with HDFC LIMITED. I had applied the loan amount of Rs. 28 lakhs and the given interest rate is 8.5% and they charged me a processing fee of nominal one. I took the loan 3 years ago and they took 40 to 50 days to sanctioned the loan.
I took a home loan with PNB Housing Finance Ltd because the terms and conditions are very liberal at that time, I have been expecting higher loan amount for my purchase. They have fulfilled my requirements and its more than 90%. The rate of interest is little bit higher and they are not following RBI guidelines. When interest rate is increased, they have started charging more but not reduced when it got reduced.
I have completed my home loan with HDFC BANK before 3 years ago. I did foreclosure and that time the interest rate is not much. I bought a residential property and the loan procedure is very easy because my papers are strong and clear to proceed faster.
I have applied for Home loan directly through Bank Of Baroda and got the loan on stipulated time .This loan was upto 15 years and got the loan amount on time ,The agent gave all the required information about the loan process .I have got all the required details about the loan process and there was no drawbacks faced as well.
I am not happy with rate of interest which was given by LIC Housing Finance. I have purchased the Flat in 2017August. The loan amount was 40L and its 15 years tenure. The processing fee is not applicable. The customer service is good. But every year, they are raising the interest rate which was not good.