Recently someone from Pune applied for a home loan in February but the application got rejected. Later, again in the month of May, he reopened the process but it got rejected. And the reason was that the norms has changed.
This was not just a case but it happened with many more people too. A man from Jharkhand applied for personal loan but his loan application was denied by the bank too.
The change in norms has a lot to do with it. Banks will go to your credit score, your age, your number of years of employment, numbers of years pending in your employment and etc.
1. “They are re-evaluating the repayment capacity of the borrowers. There is greater scrutiny of income sources compared to earlier,”
2. “In case of secured loans, category A company (large corporates) employees are being considered. Self-employed people are finding it difficult to get loans,”
3. Some banks and NBFCs (non-banking financial companies) are happy to serve their existing customers as it is difficult for them to assess the ‘new to bank’ customers,” s
For making your loan processed without any complications, you must clear all your existing dues of all your credits taken till now as these things will reflect and has a lot to do with your CIBIL.
Also, if you have recently taken a loan from somewhere, you must not apply for it because a rejection will leave a bad impact on your credit score. Try to keep a gap of 6 months or so.