Why Home Loan In Bandhan Bank With Good CIBIL Score Will Reject?

One of the biggest investments done by an individual is in real estate. It can be as an investment or to have a residential purpose. But no matter what the reasons it, upfront payment will not be enough. To overcome any financial issues during the purchase, people opt for the home loan in Bandhan bank.

Rejection Reasons For Home Loan in Bandhan Bank

However, there are events when even after amazing CIBIL score, an individual received a red flag. It is essential for an individual to understand that CIBIL is just a part of the overall process to get a loan. There are several reasons due to which home loan can be rejected by Bandhan Bank.

1. CIBIL Report Comments - CIBIL Report is not just about three-number that shows the reliability of an individual. But it is deeper than that and it contains comments and remarks from lenders. If an individual is not able to clear off his/her debt then bank comes up with an easy option of paying a lower amount than combined EMIs. This will add on a remark of settled or written off in the reports that is not appreciated by lenders. Even for late payments, it adds days past due or DPD.
2. Overleveraged - This will count the monthly or annual income of an individual along with other EMIs that he/she is involved in. If the monthly income of an individual is INR 60,000 but is already paying three EMIs of INR 10,000, 15,000 and 20,000 then the bank will reject their application. This is due to unfavorable ration under debt to income.
3. Secured to unsecured loan ratio - The unsecured loan is one with no security or guarantee in the form of assets whereas secured loan has assets as guarantee of loan. If the favorable ratio is not obtained then the loan can be cancelled out. In a favorable loan, the unsecured loan will be lower than secured loan.
4. Credit Utilization - Many individuals don’t consider it much but the fact is that it is one of the reasons for rejection. Banks check out credit history and if the number of loans under your names are higher than they won’t accept the application. This makes an individual fall in the category of credit-hungry that will automatically put them into the not-reliable list. Banks consider such a person to fall into defaulters list at any time.
5. Defaulted Loan Guarantor - Yes, it is possible to get rejected without any mistake of yours. A guarantor is someone that takes responsibility of borrowers repayment. Hence, if an individual sign off the papers as someone’s guarantor that end up being a defaulter, then it has a huge impact on the CIBIL report.

These are the top reasons that show the rejection of home loan in Bandhan bank even without any issues from your end. Hence, it is essential to be diligent and easily keep a track on finances. In addition to this, monitoring the CIBIL score after sometime is also a good approach to follow.