Financial Blog

Points to Ponder About Home Loan Rejection

posted on 2019-09-30 13:06:46 by Admin

A few years back, purchasing or constructing your dream home was a frightening task. People generally use to hang on awaiting their retirement before getting into such a huge task handy. In the last decade or so this observation has radically transformed with the inclusion of new digital techniques in the economic sector and assisted by government schemes like the Pradhan Mantri Awas Yojana (PMAY) and more. Now, the applicants can get hold of the required funds for buying a new house without any trouble. A home loan can easily be acquired through a bank or financial institute. A number of Home Loan plans are offered by some of the top  home loan companies private loan providers.

On the other hand, this ease inconvenience has also been marked by a rising count of the home loan “non-performing assets” as well. Therefore, the loan providers are getting extremely watchful about giving approval to a request for Home Loan. Moreover, without getting the proper required details, it is possible that your request ends up on the disapproved list.

Have a quick look at the important points that decide on the loan approval of your home loan request:

Age:

A loan applicant’s age at the time of applying for a home loan is a factor that is considered vital for approval. In case the applicant’s age is below 21 or over 65 then, the banks prefer not to provide loans to these people. A home loan cannot be sustained after 60 years of age. Therefore, in case you raise a request to get a home loan at 55 years of age, then the maximum time you will have is 5 years to pay back the borrowed amount.

Work History:

An unsteady work record can also put your request for a loan in problem. What the banks usually search for is that the applicant should have at least 6 months of work record with the current company and should also have an overall experience of 1 to 2 years. On the other hand, changing jobs frequently may put a negative impact on eligibility.

FOIR: Fixed-Obligation-to-Income ratio

“Fixed-Obligation-to-Income ratio” is a ratio between the in-hand salary to gross salary including the applied credit. The application for a loan is at high risk of getting rejected if the person is already paying back numerous monthly installments or credit card dues. However there is no clear criterion as to what number of cards or installments is allowed, the overall EMIs should not be over 50% of the applicant’s monthly earnings.

Co-applicant

If a person has applied for the joint housing loans, then the eligibility, as well as the credit value of the co-applicant, is just as necessary. As the income source of all applicants is considered and the overall funding amount goes high exponentially if you have a joint loan application. Now, all the applicants can also experience separate tax deductions on the loan.

These blog gives the information about the home loan plans are offered by some of the top banks and private loan providers.

A number of Home Loan plans are offered by some of the top home loan companies and private loan providers.