Given the average price of residential properties in today’s market, the majority of us require financial assistance from a home loan while investing in real estate. Making a lump sum payment can be challenging for most people, even if our resources are sufficient to cover such a costly purchase. In these situations, a home loan is very helpful since it provides you with a sizable loan amount that allows you to purchase the property you want without being constrained by money. However, in order to be eligible for the Indiabulls Home Loan amount, most lenders require potential borrowers to complete a set of eligibility requirements and submit the necessary supporting documentation. However, few borrowers are aware of what the eligibility requirements include or how failing to meet even one of them could result in the denial of a PNB home Loan. In order to help you avoid rejection on your home loan, we have provided a comprehensive list of all possible causes in this article.
Poor credit score: Your credit score, which keeps track of all on-time payments made for debt obligations and other financial commitments, is a reflection of your credit repayment history and habits. Lenders are likely to reject your PNB Home Loan application if you have a low credit score because it can be interpreted badly in terms of your creditworthiness. Typically, lenders offer applicants with a CIBIL score of 750 or higher favourable home loan terms. A poor credit score can be read as poor creditworthiness. Thus, as a potential PNB home loan borrower, your CIBIL score should be 750 or above.
Job profile and Income: Your income stability, career history, and future employment prospects are carefully examined because they directly affect your ability to repay a home loan because it is a sizable loan sanction that represents a considerable financial commitment. Lenders are keen to provide salaried, professional, and self-employed clients with favourable home loan interest rates on amounts as high as Rs. 5 Crore, providing they match their qualifying mandate. Your work history, the nature of your work, your job description, as well as your active and passive revenue are among the factors that lenders primarily take into account when evaluating your employment and income.
Previous loan rejections: Your prospects of obtaining a favourable Indiabulls home loan may be jeopardized if your prior loan applications have been denied, which frequently results in yet another rejection. Even if being denied a loan in the past isn’t fatal, it is a huge red flag for lenders who want to see the remedial actions you’ve taken since then and evidence of your improved loan eligibility.
Your properties in Red Zones: There may be a list of “red zones” maintained by financial institutions where they do not support property purchases. This might apply to particular areas, including poor communities or regions that have seen an increase in unauthorized buildings. Lenders may be hesitant to fund your purchase if it is an older home because they prefer to finance new houses.
Missing Documentation: To avoid confusion at the last minute, applicants are highly urged to compile the list of papers needed for the PNB home loan well in advance. If you don’t already have the document, you have adequate time to make arrangements for its availability. If the lender discovers inaccurate or incomplete information on the application or if there are any missing documents, they are unlikely to accept your loan request.
Property Title and Value: Lenders stay away from assets that are involved in financial or legal difficulties, have ambiguous ownership titles, or have small rights. Additionally, they may not see your application favourably if they discover that the property value is far less than the actual sale price.
Builder’s Reputation: For projects led by reputable builders or those on the lender’s list of approved builders, obtaining house financing is simple. However, if your builder is not on the list or has a bad reputation in the community, your house loan application may be turned down.
Not enough repayment capacity: Your requested Indiabulls home loan amount should be within your ability to repay it, meaning that you should be able to make your EMI payments regularly. Since granting a sizable quantity to someone who might not be able to repay it on time raises the danger of default.
Ongoing debts: You could not be qualified for a PNB home loan if you currently owe a lot in debt. The fact that you currently have previous EMI obligations filling up your repayment capacity and leaving little to no room for a new EMI responsibility may cause lenders to hesitate before approving your loan application.
Uncertainty of Employment and Income: The lender places a high priority on your income and employment situation because they have a direct bearing on your capacity to make on-time EMI payments. Your chances of getting a home loan may suffer if you don’t work for a reliable company or change jobs frequently because it shows that your income is unreliable.
Property Value Evaluation: You might not be granted a loan sanction for the same property if it doesn’t fulfil the lender’s requirements for property evaluation. The property’s age, market worth, developer profile, and potential legal concerns are all considered property-related variables.
As a result,
If the Indiabulls home loan is your only means to get a home of your own, then you should ensure that your application doesn’t get rejected. You should take all reasonable steps to increase the chances of your application getting approved. After knowing the reasons, you must be in a better position to apply for a home loan now that you are more aware of the potential reasons it might be denied. If you’re still unable to fulfil the lender’s requirements for an Indiabulls home loan, then apply with a co-applicant to increase your chances of being accepted. To ensure you do not face rejections, we suggest you thoroughly research your options and optimize your loan eligibility and financial standing before you proceed with your home loan application.
