Home Loan Rejection Reasons: Almost every Indian dreams of buying his own house. But due to rising inflation and high property prices, most people have to take a home loan from the bank. If you are also planning to buy a house and want to fulfill this dream with the help of a loan, then it is very important to know what the bank looks at first in your application.

The bank checks many things like your income, credit score and job stability. If any one of these is missing, your loan application may get stuck or may be rejected. Let us know about some such things, if you do not pay attention to them, you may face problems in getting a home loan.

1. Take care of CIBIL score

Apart from home loan, your CIBIL score is checked at many places also. If your CIBIL score is below the limit set by the bank, then the bank rejects the loan application. Having a good CIBIL score increases your chances of getting a home loan. Besides, banks can also give discount in interest rates to a person with a good CIBIL score.

2. Income condition

While giving home loan, the bank takes information about the income of the applicant. Minimum income limit has been fixed in most banks. If your income is below this limit, the loan is rejected. Also, your income has a direct impact on your loan amount. Banks avoid paying large amounts on low income.

3. Job stability is important

Banks first see how stable your job is. If you change jobs frequently or work on contract. Also, if your income is not regular, then the bank faces risk in repaying the loan. In such a situation, there may be a problem in getting the home loan approved or the application may even be rejected.

4. Avoid giving wrong information

Giving wrong information while giving information related to home loan in the bank can become the reason for rejection of the loan application. Therefore, all the information should be filled carefully and correctly. If you are not aware of some things, you can ask the bank about it.

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Home Loan: The Monetary Policy Committee of RBI has today reduced the repo rate by 25 basis points to 5.25 percent, due to which the home loan rates are expected to fall drastically. It is being told that home loan rates will come down to the level before the Global Financial Crisis in 2008.

Already many banks like Union Bank, Bank of India, Bank of Maharashtra and Indian Overseas Bank are currently offering home loans at 7.35 percent. Due to reduction in repo rate the interest rate will reduce to 7.1 percent. Accordingly, with a rate reduction of 0.25 points on a home loan of Rs 1 crore for 15 years, the EMI will be reduced by approximately Rs 1,440 per month.

Deposit rates will have to be cut

Bankers say that to bring down the home loan price to 7.1% for new borrowers, lenders will have to drastically cut deposit rates or change the spread on the benchmark rate. If this happens, new borrowers may have to pay higher interest than existing floating-rate borrowers.

Unless deposit rates come down, banks’ net interest margins will decline, while non-banking finance companies will benefit immediately from lower funding costs. “This policy is a big help for the NBFC sector and especially for last-mile financiers like Shriram Finance. The continued neutral stance, along with the announcement of buying OMOs worth Rs 1 lakh crore, ensures that liquidity remains good.

What is the opinion of experts?

Ankur Jalan, CEO of Golden Growth Fund, says that from the depositors’ point of view, the 25bps cut in repo rate will raise concerns about declining returns on fixed deposits and other interest-bearing savings. Additionally, this may force banks to reduce deposit rates in the coming months, making it difficult for savers to earn good returns. While low rates can largely support economic growth, wealthy investors and family offices often redirect capital to higher return products like real estate-focused Category II AIFs to maintain real yields, adding to the fundraising momentum for these funds. The low interest rate environment also reduces the cost of capital for developers and strengthens project viability, which in turn increases opportunities for AIFs.

Preksha Singh, CEO of Agrasheel Infratech, said that India’s real estate market has already become a center of attraction for global investors and the NRI community. Now with the reduction in interest rates, investment will become even more profitable. Stable economy, growing demand and low EMIs together will make India the best investment destination in the next few quarters.

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Every person dreams of home. Whether the house is small or big flat, everyone wants to have a house of their own. But it was not easy to fulfill this dream amidst the prices of today’s inflation and sky -touching property. People are not able to buy a house directly with their savings, so most people are making home loans from banks and housing companies and make their dreams a home. But the question is, how many lakhs of people are taking the most rupees home loan? Let’s know the answer.

Now demand for big loan instead of small loan

Till a few years ago, most people used to take home loans ranging from 10 to 15 lakh rupees. At that time the prices of houses were also relatively low. But now the situation has changed. The price of 1BHK house in metro cities has reached 40 to 50 lakh rupees. In such a situation, people are not able to work with small loans. According to the new report, now the demand for maximum home loan is between 30 lakh and 50 lakh rupees. That is, the middle class families are now forced to take such a big loan directly, so that the dream of buying a house can be fulfilled.

Most pressure in metro cities

On average, the prices of the house have gone above 60 lakhs in big cities like Delhi, Mumbai, Bangalore, Hyderabad and Pune. In such a situation, people living here have to take a loan of 40 to 50 lakh rupees. This is the reason that the report of banks says that now the category of loans of 30 to 50 lakh rupees is growing fastest. According to a report, about 40 percent of the customers want to take a home loan of 30 lakh to 1 crore rupees. While 20 percent people are taking loans of more than 1 crore.

Rising EMI and people concern

However, taking such a large loan means the burden of long EMI. If the interest rate on a loan of 40 lakh rupees is 9 percent and the duration is 20 years old, then an EMI of about Rs 36,000 is made every month. This zodiac eats a large part of a common employed person’s salary. This is the reason that people are now making their entire financial planning according to EMI.

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SBI Hikes Home Loan Interest: The country’s largest government bank has given a blow to the dreams of the people who are planning to buy a house. State Bank of India (SBI) has decided to increase interest rates on home loans. The bank has increased 25 basis points in the upper band of interest rates. Earlier SBI’s home loan interest was between 7.50% to 8.45%, but now it has increased between 7.50% to 8.70%. That is, the lower limit has been kept the same, while the upper limit has been increased.

It is worth noting that in July also, SBI’s interest rate range was 7.50% to 8.45%. After this new change, now new customers will have to pay interest from 7.50% to 8.70%.

SBI shock to home buyers

In the end of July, Union Bank of India also increased the interest rates from 7.35% to 7.45%. In private banks, ICICI is providing home loans at 8%, HDFC 7.90% and Axis Bank 8.35% at the minimum interest rate.

This increase has been made by the bank at a time when the RBI is constantly trying to give relief to the people by cutting the repo rate. This step of SBI will affect especially the customers whose credit score is low, as the upper interest rate limit has been increased.

It is believed that after SBI, other public sector banks can also take such steps soon. According to the ET report, this change will currently be applicable only to new home loan customers.

Bob home loan rates: If you are also planning to buy a house, then there is a good news for you. Bank of Baroda of the public sector has announced to reduce interest on home loans. Bank of Baroda said on Friday (July 4) that the interest rate for home loan has been cut by 5 basis points (BPS) i.e. 0.05 %. With this, now the annual interest rate on home loans has been reduced to 7.45 percent. Apart from this, the bank has also waived processing fees for those taking new loan.

The interest rate was reduced in June also

Earlier on June 6, after a cut of 50 basis points in the repo rate, the bank had reduced the interest from 8 percent to 7.50 percent on the home loan. Now 5 basis points have been cut further. According to the CNBC report, Sanjay Mudaliar, Executive Director, Bank of Baroda, said, “The purpose of this new deduction at home loan rate is to support people’s wishes and increase credit growth.” For home loan you can apply digitally or in-bunch.

These banks also reduce their home loan interest

Apart from Bank of Baroda, Punjab National Bank (PNB), Indian Bank and Bank of India (BOI) have also made their home loans cheaper. All these banks have cut 5 basis points in their marginal cost of lending rate i.e. MCLR in July.

With this rate cut, PNB’s overnight MCLR has come down from 8.25 % to 8.20 percent. At the same time, 1 month MCLR has been reduced to 8.35 percent, 3 months of 8.55 percent and 3 years MCLR 9.20 percent.

Similarly, no change has been made in Indian Bank’s Overnight MCLR 8.20 percent. 1 month MCLR 8.40 percent, 3 months of 8.60 percent, six months MCLR has been reduced to 8.85 percent, 1 year MCLR has been reduced to 9.00 percent.

Bank of India’s Overnight MCLR 8.10 percent, 1 month MCLR 8.40 percent, 3 months of 8.55 percent of 3 months, six months MCLR 8.80 percent, 1 year old MCLR 9.00 percent and 3 -year MCLR 9.15 %.

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Home loan emi: When any person plans a property, nowadays he has to pay a large amount. The reason for this is to be very expensive. It is not a matter of everyone’s control to fulfill the dream of the sky touching the sky. For this, EMI has to be repaid on the loan for a long time. It has also been seen that many times people fill the EMI on the loan are very upset. But there are some such tips, which you can repay the loan quickly. You can finish it ahead of time. By doing this, not only will you have to pay less interest, but the home loan will also end soon.

Let us know which methods that can be done by adopting it-

1-EMI

EMIs on the loan that you are filling at this time, can increase a little more in it, by doing this, the loan duration will be reduced and the interest on it will also be reduced automatically. That is, as much as possible, increase the amount of EMI compared to before.

2-time payment

The best way to get rid of any loan is to pay before time. That is, if you keep pre-payment of different loans in a little bit from your savings, then you will have to reduce interest on the loan. The big advantage of this will be that the loan duration will also be reduced and your interest on it will also be reduced.

Then the second advantage of this is that when your already running loan is over, then after that you can apply for another loan. That is, you can get these two benefits from pre -payment.

3- Finance of loan again

Refinance of loan means that to finance the already running loan from another bank. That is, your loan will be transferred to another bank. This can give you benefit in that case when another bank is giving loans at a low interest rate compared to your bank. In such a situation, you can transfer the loan to other banks. However, it is definitely that you will have to pay the processing fee along with the Bachi charge while doing so, but the benefit of the interest rate can get the benefit.

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