The final decision to grant a loan lies with the credit department of a bank. Some of the reasons why a loan can be rejected are:
Already running several loans and hence a bank may not be comfortable with your existing leverage levels vis-a-vis your salary level.
Possible Way Out
- If you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels or
- Try to pay off some of your debt so that your leverage levels can come down or
- Do a balance transfer/debt consolidation/re-financing of your existing loans such that the rate of interest on loans can also come down and additional loan can also be provided.
Issues in your credit history as reflected in your CIBIL, Equifax reports
Possible way out
- If the issue is a minor one like some delay in payment of credit card due then we can try your application in some other bank who can possibly take a lenient view on the deviation
- If you think that the credit report is erroneous and you have sufficient documentary proof we will represent the case to the bank and try to convince the credit team
- If the issue is a major one like write off, settlement of any past dues etc then it might be difficult to obtain a loan. Certain mitigation factor like if you/your spouse/your parents have an own house in India can give comfort to certain banks to give you a loan.
Most banks have certain internal credit parameters to evaluate a loan which is kept confidential and not shared with us. Several demographic, financial and credit aspects go into these internal evaluation. You might not have met the minimum cut off for obtaining a loan.
Possible way out
We can re-apply for your loan in one of the other 10 plus lenders that we are affiliated to.