As a banking employee, I must say lenders usually decline home loan requests when borrowers fail to satisfy their eligibility or risk standards. Some of the common reasons for rejection of home loan applications are:
A low CIBIL score, inconsistent income, high ongoing EMIs, or inadequate income to cover the loan.
If the required documents are lacking.
If the property has legal or technical complications, or if the applicant has an unstable job history.
A high loan-to-value ratio, discrepancies in signatures or information, and late tax submissions can also be the reasons.
Lenders favor applicants who possess a clean credit report, have reliable income, and whose property documentation is in order.
To get into detail about the rejection reasons, you can check this: Why Home Loans are Rejected?
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Why do banks reject home loan applications?
I am planning to apply for a home loan, but getting scared of its rejection. So, just wanted to understand why banks reject home loan applications.
Isha Patil
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20 days
2025-12-12T09:33:35+00:00 2025-12-18T11:31:32+00:00Comment
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