What if my Home Loan application gets rejected

POSTED BY CA Karan Batra ON May 28, 2013 10:58 pm COMMENTS (8)

I’m still not sure whether I’m eligible to apply for a Home Loan or not..  Some banks are saying I’m not eligible whereas some banks are saying I’m eligible… I fear that the bank executives who are saying that I’m eligible are just trying to take my file..


My query is – if I apply for a loan and it gets rejected because of non-eligiblity, would that leave a bad impression if I apply again after an year ?

8 replies on this article “What if my Home Loan application gets rejected”

  1. Thanks Bemoneyaware for your inputs…

  2. bemoneyaware says:

    The loans you applied for called as Enquiries. Enquiries are made on your credit history when you apply to a lender for a loan. The lender accesses your Credit Report to assess your repayment capability.
    Summary portion of CIBIL CIR Report has summary of all your loan accounts and enquiries made.
    Enquires section tells who’s been asking for your credit report i.e enquiries made on your account by various lenders. It shows the total number of enquiries as well as gives details of each enquiry. Name of the institution which enquired, the date of the enquiry, the purpose of the enquiry and the amount for which the enquiry was made, it has all related details.
    Usually consent to check your credit report is part of your loan application form.
    To check the Enquiry section you can see our article Understanding CIBIL CIR Report

  3. Credexpert says:

    Dear Mr. Batra,

    Any application made to a lending institution for a credit facility would be reported in the credit report as an enquiry. This is irrespective of the fact whether the application is rejected or approved by the lending institution. Having high no. of enquiries on the credit report in a short span of time would also be viewed negatively by lenders as this implies a credit hungry behaviour.

    We would suggest that you obtain your credit report and score as the facts on your credit report would help us comment in a detailed manner.


    1. Dear Credit expert

      Thanks for your guidance

      I would like to discuss more on the same with you. I request you to kindly get in touch with me at +91-9810685258

  4. Thanks Manish

    I just wanted to know whether this rejection will go in the CIBIL report or not… and you’ve specifically stated that it will go..

    Thanks for the response..

  5. Hi Karan

    Its always tough for a non-salaried person like you or Me 🙂 , to get a home loan . Because if you are salaried, it somewhere shows security of income flow (not sure how many will agree to it) . They just see 3 yrs ITR and 3 months account statement .

    but when you are self emoployed , something happens to these banks and they will ask for tons of proof . like 1 yr bank statement, your ITR , nature of your business, nature of its growth and others things . I can understand their side , but its too much 🙂

    Its not that agents will just take your file like that, because even their commission is conversion based, not lead based . So if you dont get loan , they dont get any money .

    ANyways coming to point . The way it works is that first they do a rough calculation based on your numbers and then finally tell you the amount which can be sanctioned, and then once you are ok , they go ahead and send this data to their final team , called as “credit team” . They finally approve things .

    If its declined , its not a good thing , as it will go into your CIBIL , but what other choice you have 🙂

  6. bemoneyaware says:

    Karan surprised to see your question here. I am used to seeing you on other side-answering questions 🙂
    Why are banks saying you are not eligible for home-loan?

  7. Dear Karan, please apply right now. In case your application get rejected, you may reapply after 1Y to avoid adverse entries in your CIBIL score/report.



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