Here are some of the most common reasons why Banks Reject Loan / Credit Card Applications in India,
1. Poor Payment Track Record of Loans / Credit Card - You are heavy on EMIs and they have been piling up without any decrement in the amount outstanding.
2. Loan vs Income Mismatch - If your income is not sufficient to the Loan Amount you are seeking, then be assured to get your application rejected. Safe figure what CAs tell is 4 times the Gross Figure on your IT Returns for Housing Loan purpose only. Other purposes, depends on your credit profile.
3.CIBIL Record - If you are in defaulter's list or if you have a co-applicant who has poor credit history, then you are sure to be turned down
4. You have been a Lona Guarantor to Someone who has defaulted - If ever in the past, if you have stood guarantor for a person's loan, then you are inviting RISK on your profile if the other person defaults. Your name will be in CIBIL record for the same.
5. Stability in Job / IT Return Consistency is important to prove your ability to earn and payback the LOAN amount. Don't HOP from job to job to job every year.
6.Desperately don't Apply for Loans Simultaneously at More than One Bank - In case if your loan application has been rejected in the past, don't be desprate to seek money. Banks can see this from CIBIL record and are likely to turn you down. Wait until things change and then reapply.
