Punjab Sind Bank Home Loan Rejection

Reasons for Punjab & Sind Bank Home Loan Rejection

The reasons for a home loan rejection generally remain the same across all banks expect for one thing that every bank has its own internal policies in giving out loans the worthy borrowers. Punjab & Sind Bank home loan rejection could have happened due to the following reasons.

• Low credit score
• Unstable employment
• Insufficient income
• Working in a delisted private company
• Not falling into the age limit
• Living in an address which is present in the defaulter list

Punjab & Sind Bank Home Loan Rejection Criteria

Eligibility Criteria

Punjab & Sind Bank has its own internal eligibility criteria for its home loan schemes. They are based on your salary, the job you do, the company you work for, experience etc. that any applicant needs to satisfy before moving ahead. If any person does not satisfy this criterion then the Home loan application will be rejected.

Low Credit Score

One of the first and foremost reason is if the home loan applicant has low credit score. Any bank, when it gets a loan or credit card application will pull out the individuals credit score which is available with the number of credit bureaus operating in the country.

The credit score is the accumulated score based on how regular you were in paying back your loan or credit card bill. This is the very first step taken by Punjab & Sind Bank when screening your application. If your credit score is too low, then your home loan will be rejected.

It is best to check your credit score before you apply for a home loan. You can apply for a free credit score on CreditMantri.com. This way if your score is low you can improve your score before applying.

Late payment or discrepancies on your credit report

A credit report contains the complete history of your loans or credit cards utilized by you, how regular you were in paying back your credit, late payments if any etc. If any applicant has the terms “settled” or “written of” against any credit account, your loan application will be rejected as these terms indicate that you have defaulted on your loan and that the lender has settled the account realizing that the individual will not pay back the balance.

Similarly, if there are any discrepancies like your date of birth is different from what is on your application then it is grounds for rejection of Home loan. It is best to rectify any such discrepancies well in advance to avoid your Punjab & Sind Bank home loan being rejected.

Frequent job changes

Changing jobs when the right opportunity with good pay comes along is normal. If a person changes jobs frequently say within 6 months or a year, then it creates an impression that the applicant is not dependable. In such cases the bank might reject your application.

Not in lender list of approved employers

You might be working in a company which is not in the list of approved employers by banks. In such cases the banks feel that your job is not secure and not reliable to pay back the loan amount.

Insufficient salary

Salary is a very important criterion for a home loan. If you do not match the salary criteria stipulated by Punjab & Sind Bank your application will be rejected.

There is also the other scenario where though you have higher income your application might have been rejected. This is because you might have lower disposable income which might not satisfy the loan EMI to salary balance ratio. That is, you do not have enough salary balance after paying your monthly EMI.

High level of debt or is already a loan guarantor

Home loans being a high value investment, also means that the EMI each month will be high. If an applicant already has debts that need to be repaid, then the loan application might be rejected.

Similarly, if the applicant is already acting as a guarantor for another loan then there is a risk that the other person might not pay their loan and will fall on the applicant who will have to pay the dues as a guarantor. This is also a reason for Punjab & Sind Bank home loan rejection.

Co-applicant has poor credit score

In today’s scenario most home loan applicant goes for joint applications to reduce the burden of EMI. Even though taking a joint home loan has its own advantage it can also be a cause for the application to be rejected if your co-borrower’s credit score is low. This is because the loan amount and EMI will be decided based on the combined profile of all the applicants. So, if one applicant has low credit score it will bring down the overall score of the group.

The property has legal problem

When applying for a home loan all the original documents pertaining to the property must be submitted to Punjab & Sind Bank. This is because your property acts as the collateral for the home loan. If there is not proper documentation or if the property is under some legal action, then the loan will be rejected.

As a precaution it is best to verify all the documents and property details before purchasing. You can also visit the sub-registrar’s office or the CMDA to make sure there is no problem with the property legally or if it falls under any Government plan.

Frequent credit enquiry

If a person applies for credit multiple times in a very short period, you will look like you do not manage finances properly and is always looking for credit as you over spend. This shows, the bank that you are unreliable, and the home loan application might be rejected.

How will Punjab & Sind Bank Home loan rejection affect credit rating?

There are two scenarios to explain how Punjab & Sind Bank Home loan rejection will affect credit rating based on the application processing stage you are in

Scenario 1: If you go to Punjab & Sind Bank or visit their website to just enquire about Punjab & Sind Bank Home Loan processing fees, rate of interest, tenure etc. hence your credit score will be pulled by the bank through different sources as an initial check. This is called soft enquiry ad will not affect your credit score.

Scenario 2: On the other hand, when Punjab & Sind Bank directly pulls your credit score and credit history from any of the credit bureaus in India and find out that your credit score is low, your home loan application will be rejected. This type of enquiry is called hard enquiry. And it is this hard enquiry that will affect your credit score.

Punjab & Sind Bank Home Loan Processing Procedure

The Punjab & Sind Bank home loan approval process & verification process is simple and much quicker for existing Punjab & Sind Bank customers. They can apply online and get pre-approved offers on home loans with attractive interest rates. The loan amount is directly credited to their account instantly.

The application process is different for other customers. The borrower needs to either apply online or directly download the application form from the official website or visit the nearest Punjab & Sind Bank branch. They can also call the Punjab & Sind Bank home loan customer care to proceed with the application process.

A Punjab & Sind Bank representative will collect the filled in application form and all the necessary documents required for verification. The bank will do a background check on the customer’s home and professional information. If there are any discrepancies with the information provided, the Punjab & Sind Bank home loan application is likely to be denied. After passing through document verification and eligibility criteria, the approval process moves to the final level. At the final stage, the Punjab & Sind Bank home loan interest rate and tenure are fixed and sent for your acknowledgement.

In case your home loan application was rejected you will receive Punjab & Sind Bank loan rejection letter which will have details on why your application was rejected. You can also find sample letters online by searching for Punjab & Sind Bank loan rejection letter sample.

Punjab & Sind Bank Home Loan Rejection FAQs