precautions, perhaps you won't have to undergo the heart break of a loan rejection.
Too many debts
If the applicant has a huge credit card balance, a couple of personal loans and a vehicle loan, his income could be barely enough to make repayments towards existing debts. A person who has history of defaulting on previous debts may not be considered favourably by lenders.
Unclear title
Sometimes, a lender may not be satisfied with property documents or title, or may opine that the
builder does not have the necessary approvals for the project. A loan application may get rejected when the
bank's legal team that reviews the property finds technical discrepancies.
Age of the applicant
If the applicant is nearing retirement, banks can offer only a short tenure loan. This translates into
high EMIs that could be unaffordable. Hence, older the applicant, lower are the chances of his loan getting
processed.
Repayment capacity
A person with a regular source of income and who has not changed jobs frequently is preferred by a
lender. The chance of such a person defaulting is rare. Further, if he has additional savings and a healthy
bank balance, the lender is assured that he wouldn't lose his money.
On the contrary, a person with many dependents and heavy financial commitments who changes jobs
frequently may not be considered favourably by the lender
Some occupations are considered high risk by lenders. Also, some banks may not lend if the property is
outside prescribed geographical limits. Income level, health, educational qualification, age, other debts
and financial stability determine how much loan is sanctioned to you.
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