A "low interest" loan shouldn't mean you have very little interest in paying it back!
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  • Reasons for Home Loan Rejection Reviews

    • Bank Bazaar Home Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      The experience i had with the BANK BAZAAR was simply great . The customer service from the bank bazaar was done in a amazing manner and they contacted in a proper time as i wanted . they explained me everything in detail and also cleared all all my queries proper manner . The website of bank bazaar was very user friendly for the first time user .
      Was this review helpful? 0
      , surat
      Reviewed on Sep 20, 2017
    • HDFC Limited Home Loan
      "Good one"
      0.5 5.0/5 "Blown Away!"
      It was a real super service i received from the HDFC LTD for my home loan process . They reached me on time and gave me all the required details for the home loan process . It offered me rate of interest of 8.35% and even the processing me was kind of minimal , over all i loved the process . There was some personal issues so only was not able to opt for the loan .
      Was this review helpful? 0
      , surat
      Reviewed on Sep 20, 2017
    • Dena Bank Home Loan
      "It Was Good"
      0.5 4.5/5 "Excellent!"
      The service which i received from DENA BANK for my home loan process of mine was good . i received calls from the bank executive and they delivered the information in detailed matter. the kept the loan process on hold due to some personal reason that i am facing within 3 months i will be opting for the same process .
      Was this review helpful? 0
      , pune
      Reviewed on Sep 20, 2017
    • HDFC Limited Home Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      It was a real great service which i received from the HDFC LTD for my home loan process . The institution was very good in their services and the point of contact from the institution site everything was really great and that was the only reason i couldn't opt for the loan was the property i had selected can't be approved by them because it doesn't fall in the city limits so only and rest everything was good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "Easy to Navigate"
      0.5 4.0/5 "Great!"
      Bank Bazaar is giving good service, they have contacted me and connected with the bank on time. They helped to find beneficial product its all good. Meanwhile I would like to suggest Bank Bazaar should improve the post process and they should provide value added service.
      Was this review helpful? 0
      , pune
      Reviewed on Sep 20, 2017
    • SBI Home Loan
      "Its Average"
      0.5 2.0/5 "Expected more"
      SBI really not done a good job, they assigned a person in pune, but they didn't give genuine information and their service is not upto the mark. But interm of interest rate, whatever I expected I got same rate but charges was high even they have taken for mortgage too.
      Was this review helpful? 0
      , pune
      Reviewed on Sep 20, 2017
    • SBI Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have got the Housing loan from SBI around 5years ago. They have taken around 10 days to disburse my loan amount., The required loan amount has been given and I am satisfied with it. This loan has the tenure of 15 years. The fore closure and the part payments options are available with the SBI housing loan.
      Was this review helpful? 0
      , imphal
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      The best part of Bank Bazaar, they have good follow up and continuous assistance on loan request. I am using Bank Bazaar site for past five months but this is the first time I applied for home loan its good and it gave successful experience on it.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
    • HDFC Limited Home Loan
      "They should provide proactive service"
      0.5 4.0/5 "Great!"
      I feel HDFC Ltd are not providing proactive response, but HDFC ltd done the home loan process on time. They gave me 8.65% of interest for tenure of 20 years. I took the principal amount of Rs. 12 lakhs. I am fine with their offers but I would like to suggest them to improve their service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "Everything in one page"
      0.5 4.0/5 "Great!"
      Call back service is good in Bank Bazaar, whenever I give any request related to the financial products,they are providing good response and helping the customer to resolving the query. I am using online interface of Bank Bazaar its easy to use.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
    • SBI Home Loan
      "Looking for better service and immediate reply"
      0.5 3.5/5 "Pretty good"
      SBI home process was very difficult, I undergone with many criteria, many process and many paper work, there was no response from their end for my mail. They should improve the service part. But I am quite happy with interest rate, whatever the market rate they have offered the same thing. Based on property value they sanctioned my loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
    • HDFC Limited Home Loan
      "EXCELLENT SERVICE"
      0.5 5.0/5 "Blown Away!"
      It was a good service from HDFC ltd ,representatives and customer service was very responsible and helpful. I have taken for 10 years also the interest rate was also little high with them,but overall it was excellent service from HDFC ltd..
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "Userfriendly website"
      0.5 4.0/5 "Great!"
      Through Bank Bazaar I have taken two financial products, one I have taken investment plan and Housing loan. When I reached Bank Bazaar, they are providing good service. But I would like to suggest them to update their system and they should avoid repeated calls.
      Was this review helpful? 0
      , dehradun
      Reviewed on Sep 20, 2017
    • Punjab National Bank Home Loan
      "Hassle Free experience"
      0.5 4.0/5 "Great!"
      I don't want to do anything on PNB home loan process, they have taken complete initiative. Whatever query I had everything got resolved, my end loan process got delay to get the document from builder. But they have done everything on time and with good interest rate.
      Was this review helpful? 0
      , dehradun
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "Great response and providing true information "
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar is a awesome website for consumer. they are providing true information and rate of interest. Consumer can getting more and more responses from banks. Thank you so much for making this website. Great Website..................
      Was this review helpful? 0
      , vadodara
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "Good financial advisor"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar gave me lot of option, to compare and take best thing in the market. Its a one stop solution for financial needs. I am using Bank Bazaar website its easy to navigate and user friendly as well. Overall I am satisfied with Bank Bazaar.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 20, 2017
    • SBI Home Loan
      "Good offer in the market"
      0.5 4.0/5 "Great!"
      I am happy about SBI interest rate is pretty good, but service wise its not upto the mark. I have went to branch to complete the paper work and also I had follow up on my loan process and legal process as well. Finally my requested amount got sanctioned more than Rs. 50 lakhs with tenure 20 years .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 20, 2017
    • Bank Bazaar Home Loan
      "One platform to check the offers"
      0.5 3.0/5 "Satisfactory"
      Bank Bazaar is really good, it helped me to select right bank on time. Based of the interest rate I selected PNB housing for the home loan. Everything is good but I would like to suggest Bank Bazaar should analyze the benefits of loan products before suggesting to the customer.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
    • Punjab National Bank Home Loan
      "Should be transparent in their loan process"
      0.5 4.0/5 "Great!"
      PNB housing loan service is good, but they have told me insurance amount was Rs. 1 lakh, when I got loan letter they have taken Rs.2 lakhs from the disbursement. Loan process was quick but they were not transparent in their process. They should communicate the process to the customer.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
    • ICICI Bank Home Loan
      "Not satisfied"
      0.5 2.0/5 "Expected more"
      While taking a home loan from ICICI Bank the services and process was good. I guess because it was a sales process. But while closing the loan I had a very poor experience and the bank was not supportive to provide the necessary documents I needed.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 20, 2017
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    Reasons for Home Loan Rejection is Rated as "Great!" by 23561 Users

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    Home Loan BYTES FROM OUR KITCHEN

    Reasons for Home Loan Rejection

    Taking a home loan is one of the most crucial steps in building or buying a new home. Applying for a home loan involves a lot of research, decision making and keeping required documents ready. Being prepared not just saves time but also efforts. There are times when you are unaware of the many formalities and paper work involved during home loan application. Apart from being loan ready, it is also important to know the reasons for rejection of your home loan application.

    Some of the top reasons for which your home loan can be rejected by a lender or a bank are given below.

    Unpaid Dues:

    When a borrower takes a home loan, one of the foremost things that are involved in the approval for the same are credit history and record. The credit history check basically involves determining timely payment of dues and EMIs of other loans, etc. The best way to clear this condition is to be punctual with payments and never miss deadlines on EMIs and credit card dues. You can always keep a check on your credit record by being aware of your bills and repayment dues.

    Other Debts:

    If there is more than one debt in your name, your real income is calculated by subtracting the credit repayments from your income. If according to the lender’s analysis, your repayment capacity seems inadequate, the bank or lender may refuse to offer you a home loan.

    Address on Defaulter List:

    In some cases, if you have moved to an address which previously was rented by someone who hasn’t paid huge credit card bills or paid for a loan. And if the previous tenant or owner has given the same address in the bank records, the address could be listed in the database of defaulters. This decreases the possibility of your home loan being approved.

    Job Stability:

    Changing too many jobs also reflects poorly on the home loan application. Banks consider job stability as one of the main criteria for approving a loan for buying a home. Banks insist that the borrower should be employed in a particular firm or company for three years preferably, in order to be eligible for a home loan. If sometimes, the applicant’s company, although reputed seems unstable, the bank reserves its right to reject the loan.

    Age while Application:

    Home loan applications are rejected if the borrower’s age is close to the retirement age. The lender is hesitant to offer loans to such borrowers as it assesses your repayment capacity to be poor or zero, after a few years. However, some banks may be willing to offer short-term home loans. Short term loans for big amounts would lead to a really high EMI, taking away the comfort of availing a home loan in the first place. Therefore, borrower’s age plays a very important role in terms of home loan rejections.

    Loan Guarantor to a Defaulter:

    Being a loan guarantor to someone can sometimes be risky. Unless you are sure of the borrower’s repayment capacity, do not agree to be a loan guarantor. Without having any strong reasons for believing in that person, do not sign to be a guarantor. If the borrower defaults in his repayment, you will be held responsible to repay the loan on his or her behalf.

    Credit Score:

    Keeping your credit score high plays a significant role in getting your home loan approved. You should ensure you have a good credit score when you apply for a loan. Your credit score is recorded by CIBIL (Credit Reports and Risk Management Solutions).

    Previously Rejected Loan Applications:

    CIBIL records incidents such as rejection of loan applications. Such an incident, becomes a part of your credit record. Therefore, it is best to know the result from one bank before applying to another bank. By ensuring this, you will be able to correct your mistakes and not repeat the same errors while applying for the second time.

    Income Tax Return Filing:

    It is important to file your income tax every financial year, whether or not you receive your Form – 16 from your employer. Lenders and banks check for a clear track record of filing income tax returns of the last two years, before approving a home loan.

    Suitable Property as Security:

    Lenders do not accept all types of residential properties as securities for home loans. Properties that have a good resale value, stable price, are in demand and are easy to sell, are preferred by lenders. Ensure that while choosing your property, do not go for something too old. It is also advisable that the property is constructed by a reputed and trusted builder. Also, all the required documents must be easily available. These are the few points related to the property in question, that must be kept in mind in order to avoid your home loan from being rejected.

    Any issue with the layout or title of the property could also result in rejection of your home loan application.

    Apart from these basic reasons, there are some unexpected reasons for the rejection of your home loan application:

    Mismatched Signature:

    Signing your documents using the same signature as in the attached documents, is very important while applying for a home loan. The signatures on the home loan application form should not only match the document copies, it should also match the documents of the registered bank.

    Non-availability on Landline:

    When you fill in your landline number in the home loan application form, the bank authorities will call you on the same for verification purposes. In case, the bank calls you when you are away at work or busy elsewhere, the bank simply considers it to be a case of ‘no response’. Therefore, it is very important you also provide your mobile number in the application form.

    Property with Minor Rights:

    If the property you are taking a loan for, has minor rights, then you may be in for some rejection. If the seller has not disclosed the information about a minor having a rights on the property, your home loan application has a high probability of getting rejected.

    Being a Fresher:

    Lender or banks prefer applicants with a stable job where they have worked for at least a year in the same company. As the bank determines the borrower’s stability as well as repayment capacity by assessing the number of years of employment. So, freshers are not a preferred option when it comes to approving home loans by banks. Also, applicants who have made frequent job changes could also have their applications rejected for the same reasons.

    Being an Entrepreneur:

    For entrepreneurs with established reputation and stability, home loan approvals are easier to come. However, for those who have just started out, with a low capital and no secure future, home loan applications may not get approved so easily. In these cases, you must ensure the bank of your growth and stability as a business by providing some testimony that can help you bag the loan.

    Not Paying Telephone Bills:

    Sometimes even unpaid telephone bills can lead to the rejection of your home loan application. Banks and lenders do not look highly upon late payments or unpaid bills. This only serves as another reason for rejecting your application.

    No NOC on a Previous Loan:

    It is imperative that you get a NOC (No Objection Certificate) on any previously closed loan. Banks or lenders reject your home loan application, if you do not provide with an NOC of your old loan that has been closed.

    The list is vast and it is no joke to get your home loan sanctioned. Therefore, you must be very sure that your records are clear. Sometimes providing additional security towards your home loan application such as fixed deposits, collateral securities, a guarantor or insurance policies can help you secure the home loan you are looking for.

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