Top 5 Reasons for Home Loan Application Rejection

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Home loan is an instant way to get cash and fulfill financial liabilities such as marriage of a son/daughter, their studies, your much awaited vacation, etc. However there are certain eligibility criteria’s, requirements, paperwork, and formalities that a new loan applicant has to conform to for an easy home loan approval.  It is naturally very difficult for the person to get all the things right initially while he/she apply for a home loan. So we have dug deeper into the matter and have put together the list of easily avoidable issues faced by rejected home loan applications.


The top 5 reasons for Home Loan application rejection include:-

  1. If your home address is in the bank’s loan defaulters list

If you stay at a residence that is on the defaulters list of the bank, there is a high probability of your loan application being rejected. In India, every bank or financial institution has a separate list of defaulters in their database. This means if you live in a house of someone who has earlier skipped paying the loan debts or credit cards dues, you will have to deal with the poor circumstances and constant rejection in your loan application.

  1. If you have huge pending debts

No bank or lending institution will approve your home loan application, if you already have long standing pending dues accumulated through credit cards, late EMI payments and pending debts. You can overcome this issue by paying up and then applying for a new loan. Also you need to make sure that the CIBIL updates your data before you apply for a loan as poor CIBIL score also leads to home loan application rejection.

  1. If you have many outstanding dues

You home loan application will also be rejected if you are already juggling with too many debts. This is because, too many debt means more EMIs & the higher ongoing credit repayments and less income in hand. So if another loan will make it difficult for you to repay effectively, then your loan will be rejected.

  1. If you are a guarantor of a defaulter

You might not even thing twice while becoming someone’s loan guarantor, but this could hamper your loan approval chances significantly if he/she turns out to be a loan defaulter. Thus to avoid getting into such a scenario, it is always good to think twice before becoming someone’s loan guarantor. If they fail to pay the debt, you might have to repay the loan on their behalf or maybe end up getting your housing loan application rejection.

  1. If you are in the age of retirement

You loan application can also be rejected if you are nearing retirement age. This is mainly because at your older age you will have no repayment capacity after a few years. However there are few banks that may lend you short term loans up to your date of retirement but that would be of no use as huge loan amount will lead to higher EMIs that would overburden you. Hence, banks are most likely to reject housing loan application in such a scenario.

In addition to the above mentioned factors, your housing loan application may also get rejected in case you don’t file your income tax regularly, you have a poor credit score, your loan application has been rejected before or if you are a job hopper. In sufficient funds, inadequate deposits, any sign of instability are other significant factors that may lead to loan application rejection.

Banks reject home loan applications for a variety of reasons that not every customer can navigate. But keeping a tab on the aforementioned factors can significantly help you in your home loan approval. You must also make sure that all your finances are in order before applying for a home loan in any of the bank or financial institution.




All You Need to Know about SBI’s Used Car Loan Scheme

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SBI or State Bank of India, one of the leading financiers in India, offers special car loan scheme to allow customers to purchase a second-hand car with ease. You can use this loan scheme for the purchase of any second-hand SUVs, MUVs that are not older than 5 years. On top of that SBI Used Car Loan interest rate is comparatively lower and has easy repayment options as well which make this one of the most popular loan schemes of this category.

SBI Car Loan

Features and Benefits of this SBI Loan

This used car loan offers:-

  1. Easy payment options
  2. The SBI car loan interest rate is very affordable
  3. Zero advanced EMI
  4. Flexibility to pay the EMI anytime in a month
  5. Mere 2% of pre-payment penalty
  6. Interest Calculated on Daily Reducing Balance
  7. Optional SBI Life cover available to applicants
  8. 7 years of longest repayment tenure
  9. LTV up to 85% of the car’s on-road price including registration, insurance, and accessory items of up to Rs 25, 000
  10. Processing fee is also low and equals 0.51% of loan amount sanctioned

Eligibility Criteria for the Scheme

Private and public sector employee

  1. Gross yearly earnings of the applicant and co-applicant (if any) for SBI car loan should be not less than Rs. 3,00,000/-
  2. The maximum loan amount should be 48 times of the Net Monthly Income

Self-employed, businessmen, proprietor

  1. Gross income (taxable) of the applicant should be Rs. 4 lakhs at least (the income of co-applicant cannot be combined).
  1. The maximum car loan amount sanctioned should be 4 times gross income (taxable) as per ITR after repaying all the existing loans

Person engaged in agricultural and allied activities

  1. Gross Annual income of the applicant and co-applicant collectively should be not be less than Rs. 4,00,000/-
  2. The maximum loan amount should be 3 times of Net Annual Income

Documents Required For This Loan


  1. Bank statement of the previous 6 months
  2. A copy any Government identity proof is mandatory for car loan
  3. 2 passport-size photographs
  4. IT Returns or form 16 of last 2 years
  5. A copy of Driving License/ Ration card/ Passport / Voters ID card/Telephone Bill/ Electricity bill/Life Insurance policy as an address proof
  6. Recent salary slips or form 16 as an income proof


  1. Bank statement of the last 6 months is required for SBI used car loan
  2. Identity proof – a copy of PAN Card/ Voters ID card/ Passport/ Driving License etc.
  3. Address proof – a copy of Driving License/ Ration card/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy, etc.)
  4. 2 passport size photographs
  5. Income Proof: ITR for last 2 years
  6. T. Returns or Form 16 for the last 2 years
  7. Audited Balance sheet, SSI registered certificate / sales tax certificate / shop & establishment act certificate/ a copy of partnership

Person engaged in Agriculture and allied services (Dairy, Poultry, and Plantation)

  1. Bank statement of the last 6 months
  2. Identity proof – a copy of Passport/ Voters ID card/ PAN Card/Driving License, etc.
  3. Address proof – a copy of Ration card/Voter ID card/ Driving License/Telephone or Electricity Bill/Passport /Life Insurance policy, etc.
  4. 2 passport size photographs
  5. A proof of direct agricultural activity (crop cultivation) showing a cropping pattern and land holding with a photograph.
  6. All land should be on an ownership basis and ownership proof to be in the name of the person applying for the car loan.
  7. Written proof of managed activities.

Repayment: The loan offers the longest repayment period of 84 months to the customer. This means borrowers can enjoy lower EMIs and pay the loan debt without overburdening them.

Processing Fee: SBI charges a flat processing fee on car loans equaling 0.51% of the sanctioned amount in case of second-hand cars.

SBI Used Car Loan Interest rates: The State Bank of India charges 0.45% of over base rate for applicants who are men and for women, the bank charge over the base rate of 0.40% on its used car loans. Interest rates differ widely on loans in case of certified used cars and for loan tenure that exceed 3 years.

Which is better: Gold Loan or Personal Loan?

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Loans are an easy way to fulfill financial liabilities such as your child’s education, their marriage, your much-anticipated vacation and a lot more. However, the banks have segregated the concept of loaning into various types. There are personal loans that you can use to fulfill your personal requirements or monitory contingencies. Moving on to the next loan categories, there are car loans and a home loan that allow one to buy a car and a home respectively without worrying about the expense. Gold loan is yet another significant concept that allows you to get instant money in exchange for your precious gold.

Personal Loan or Gold Loan

If you are planning to get a loan to fulfill your personal liabilities but are perplexed about which loan scheme to choose, it is advised to choose either a gold loan or a personal Loan. Both can be used to fulfill urgent financial needs but there are certain pros and cons of both that you need to know before filling up the loan application.

What is a personal loan?

A personal loan is one of many types of loans that can be borrowed from banks. It can be used to pay the consolidated debt, house renovation or any other unexpected expenditure. Personal loans are more difficult to get and have strict eligible requirements. To get a personal loan, you must know that:-

  1. Personal loan is unsecured loans
  2. A personal loan has fixed loan amount. The better your credit score and higher your income, the more money you can borrow
  3. The personal loan usually has fixed interest rates based on your credit score. The better your credit score, the lesser interest rate you’ll have to pay and vice versa
  4. A personal loan may affect your credit score. Therefore paying personal loan EMIs on time is the best way to keep your credit score unaffected

What is Gold loan?

As you might understand from the name, Gold loan is given against the gold. Many private and national banks, as well as other lending firms, offer this loan at attractively low interest rates. Many people get this loan for short term requirements to meet the needs of their children’s education, business expansion, child’s marriage and other emergency expenditures. Popular options include HDFC, Manappuram, Muthoot and SBI Gold Loan. Some key features of Gold loan include:-

  1. The gold loan does not require any other collateral except Gold. This makes easier for self-employed and unemployed people to get this loan.
  2. The gold loan involves no/less paperwork. Just an ID proof along with address proof is enough to get this loan.
  3. The gold loan has lower rate of interest (generally 12-16% per annum). It is far lesser than a personal loan that charges 15-26% interest rate per annum.
  4. The borrower gets the option of only paying interest during the loan tenure and at the end of the loan tenure, you have the option of paying off the remaining loan amount due in a single shot.
  5. Gold loan processing time is much shorter than other borrowing options.
  6. In rural areas Agricultural loan against gold is also available for agriculturist at very low rate of interest (7%-8%). However one needs to provide a proof of agricultural document to get the loan.

Gold loan vs. personal loan: Which is better?

Ideally, Gold loan is better than the personal loan as it offers faster processing, minimal documentation, zero pre-payment fees, and no EMI option. So now if you have a good amount of gold hoarded in your locker and you have immediate requirement of cash for your personal needs, it is good to make use of the gold instead of choosing personal loan option on higher interest rates.

Smart Ways to Manage Your Personal Loan Interest Burden

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Personal loans may come as an easy option to fulfill immediate financial needs such as the wedding of a son/daughter, medical disbursals, etc., but paying the loan debt can become a niggling situation for the borrower, esp. if the amount is huge. If you also find it difficult to repay your loans, you must follow the listed below strategies to manage your debt situation without stressing your wallet.

  1. Pay costly loans first: Personal loans have higher interest rates, so it is good to pay off this first to reduce your interest burden going forward. Start by paying the maximum amount you can afford without jeopardizing the repayment of the other loans. Once you have cleared the most expensive loan debt, start paying the next big loan.
  1. Pay higher EMI’s with increased income: Instead of paying fixed EMI’s every month till retirement, it is good to pay higher EMI’s whenever there is extra income flowing in to close the personal loan debt as soon as possible. Do not splurge on the latest mobile phone or newest range of the car. Use the money to pay down your personal debt aggressively. Extra cash flows such as maturity incomes from life insurance policies and income tax refunds can be used to pay off these loans.
  1. Don’t forget to save: It is good to pay higher EMI’s on a regular basis even though your personal loan interest rate may be low. But don’t forget to save some amount for future as well even when you are dealing with ill fate such as unemployment, sudden hospitalization, increased medical expenses, etc.
  1. Use current investments to repay debt: If your personal loan interest rate has increased significantly, you can liquidate your current investments to make the payment. You can borrow money from your life insurance policy or pay off your personal loan debt using your PPF balance. The PPF allows the depositor to take a loan against the balance from the third financial year of investment, and the same can be repaid within three years. The maximum loan one can take from PPF is up to 25% of the balance at the end of the previous year.
  1. Cut down expense on dinners and movies: When it comes to paying off the loan debt on time, making little amendments in your life can work wonders in keeping your finances in check. While we have so far discussed different ways with which you can reduce your loan burden, you also need to make some changes in your lifestyle to save money and pay higher EMIs. By making lifestyle changes we mean cutting down expenses on movie shows, dinner dates, weekend getaways, excess shopping, etc. You can also avoid using a credit card and instead make purchases with cash. This will automatically help you save big and pay the loan without much hassle. This change in lifestyle is needed until the time all the loan debts are paid. 
  1. Lower your spending limit: You can also talk to your credit card company representative to lower down you spending limit. You must also avoid taking new loans until the time you repay the previous loan.  If possible, try to automatically debit your repayment dues to your bank account. In this way, the loan amount will be deducted automatically on the due date and you will not be left with extra money to spend unnecessarily. Remember, making late payment impacts your credit score negatively and you are required to pay a late fee as well which means more money disbursal from your end.
  1. Get advice from debt counseling centers: If all the aforementioned ways fail to work in your favor, approach a debt counseling center. These centers offer free advice and effective ways to help borrowers pay off the personal loan debt.

These are numerous ways to manage your personal loan interest burden. In addition to this, you can even liquidate your assets such as jewelry, property, etc. and pay the loan.

How to Check Status of Credit Card Application

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Banks have different ways with which customers can check their credit card application status but most of them have an online facility. Using this facility, one can apply for a new credit card as well as check the status of credit card application too to know how far the application has been processed, so that they can follow up with the bank representative accordingly.

Credit Card Application
Credit Card Application

Usually most banks take 2-3 weeks to process the deliver the credit card to the customer. Sometimes the bank also takes a month to deliver the credit card from the date of registration. The essential information that is required to check the credit card status online on the bank’s official website include:-

  1. The credit card application number
  2. The candidate’s PAN Card no.
  3. Date of birth.
  4. Form no.

Common steps to track your credit card application online:-

  1. Visit the bank’s official website and click on the ‘Track application’ tab.
  2. Once you click on the tab, a new window will be displayed where you need to enter details such as Form no, application number, PAN card No, etc.
  3. Once all details are entered, click on the status or enter tab.
  4. The website will then display the status of your credit card application.

You can even check your credit card application by paying a visit to the bank or by call the bank branch.

Different banks have different procedure to check the credit card status. Some prominent ones include:-

Kotak Mahindra Bank Credit card status:

Follow these steps to check credit card status from Kotak Mahindra bank online:

  1. Visit Kotak Mahindra’s official website https://www.kotak.comand login by entering your customer ID/nickname and password.
  1. Once you login, click on ‘Credit Card’ tab, a window will open displaying the ‘Credit card status’ option.
  1. By clicking on ‘Credit card status’ option present at the upper left of the website, a window will be displayed prompting to fill in either your application status no or application form no. to retrieve the current status of your card application.
  1. After you provide the details, click ‘check status’ tab Check Your Card Application Status to retrieve the current status of your card application.

To save time,you can simply click on The link displays two fields, application status no or application form no, once you enter any one detail, click on the ‘Check status’ tab to track the status of your application form with the bank.

SBI Credit Card Application Status:

Follow the steps given below to check credit card status from SBI bank:

  1. Visit SBI bank’s official website.
  2. Click on ‘Track Your Application’ option present on the homepage.
  3. Click on ‘Status of your application’ and fill in the application number.
  4. Alternatively, you can also click on ‘Retrieve Application’ tab.
  5. Enter your PAN card number and DOB as mentioned on the application form.
  6. Click on the Retrieve button to get the SBI Card application status.

RBL Credit Card Application Status:

To know the status of your RBL Credit Card application:

  1. Visit the bank’s official website and click on ‘Credit Cards’ option
  2. Once done, click on ‘To know your Application Status’ option present on the right of the page.
  3. Then, click ‘Proceed’, which will take you to another page where ‘Track your online application status’ option is displayed prompting you to fill in the reference number and mobile number.
  4. Once filling both, click on ‘Submit’ to get the credit card application status.

Credit Card Application Status from Standard Chartered bank:

You can track the credit card application status of Standard Chartered Bank by visiting the link: The link will display two fields, application reference number and mobile number, once you enter both the details, click on the ‘submit’ tab to track the  status of your credit card application form.

The No Nonsense Guide to Personal Loan EMI Payments

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Personal Loans Guide

Most of us get a personal loan to meet the current financial crisis but later fail to pay off the loan debts on time. To avoid getting into this situation, it is wise to read the fine print carefully and look for low interest rate loan schemes before signing the dotted line. Although it is good to pay all the loan debts on time, but when it comes to personal loans, the sooner you pay, the better will be your financial health and the credit score. If you are one looking to pay off your debts in the shortest possible time period, in the subsequent sections we will discuss some tips that you can follow:

  1. Choose the best home loan deal: Someone rightly said that the process of clearing loan debt faster starts at the time you get a loan. Make sure you choose the personal loan wisely by comparing the options available to you. Remember that the rate of interest on personal loan schemes varies at least 2-6% between lenders. Therefore it is good if you compare interest rates online before finalizing any one personal loan scheme.
  2. Check for no payment penalty: Most banks charge a penalty if you pay higher EMI’s to pay your loan faster this penalty is irrespective of the personal loan interest rate on offer. They do this to make up for the revenue loss that will incur on interest income. Thus to avoid getting into this issue, it is wise to choose a bank that offers zero pre-payment penalties on personal loan EMI’s.
  3. Choose the shortest loan tenure: By using easy and flexible EMI calculator, you can determine the loan options with shortest loan tenure. EMI is all about the interest rate, loan amount and tenure. Once you have opted for the personal loan with low-interest rates, you can choose the shortest EMI tenure based on your paying capabilities.
  4. Streamline budget and keep a check on unnecessary expenses: Making a budget and streamlining expenses is the best way to pay off the loan debts earlier. It also allows you to spend wisely and allocate your funds as per your basic requirements. Also, it allows you to keep a track on where your income is spent and you can easily cut down on charges that seem inappropriate to you to pay the loan debts faster.
  5. Create an emergency fund: Always create emergency funds to make sure that you can pay the loan EMI’s even in adverse situations that demand unexpected money disbursals. Missing EMI’s will add to your loan interest. It will also impact your credit score and make your future loans more expensive to you.
  6. Repay high-interest loans first: Making a list of all outstanding loan and them paying the one with high-interest rate can benefit you at large. Once you have cleared the most costly debt, you can move forward to pay the less expensive one.
  7. Monetize Assets: You can even choose to pay your home loan by monetizing your assets whether it a house, car, your life insurance policies, bonds, shares, etc. You can use these as collateral to secure a low interest secured loan from a lender of your choice.

These are quite a few significant tips that you must consider to pay your personal loan debts on time. Also, you can try and get your outstanding personal loan converted to a secured loan using your vehicle or residential property as security. But remember, this can only be done if your house or vehicle is free from various sort of debts. However note that if you fail to pay this loan, you may end up losing your collaterals. So it is a must to determine your condition and your debt paying capability before keeping your valuable property/vehicle on stake.

Why We Love SBI Credit Cards (And You Should, Too!)

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In today’s digital age we come across hundreds of revolutionary innovations driven by technology and each one of those making our life better and smarter. One such path breaking idea was that of a “Credit Card”. In ancient days we used to trade through the barter system, then came an era of exchanging metal coins for the goods and then we invented the coins and the paper currency to do commerce. But today in the 21st century, we needed something even more better, faster and more convenient than all the older methods of doing commerce and so was invented the Credit Card – famously known as the ‘Plastic Currency’ worldwide. Credit card has transformed the way we make our purchases. It has completely changed the purchasing perception of customers across the globe. The traditional way of keeping cash at hand for purchasing is rapidly becoming obsolete. They are the most convenient way of paying for absolutely anything and everything that you wish to own, from a movie ticket to flight bookings; from clothes to furniture; almost anything under the Sun can be purchased with the help of a credit card.

sbi credit card
sbi credit card

Prima facie even though the Credit Card resembles the Debit card there are few functional differences between the two. With Debit cards we can withdraw funds from the account with which it is associated whereas in case of the Credit cards  – instead of deducting amount directly from your associated account it provides you with short term loan which we have to pay off within a stipulated time failing to do so interest is charged on the funds borrowed. The beauty of Credit cards is that they fulfill the urgent need of money without needing to spend a single penny in cash.

Credit Cards provide various benefits to us they can be listed as under:

  • Convenient: They prove to be more convenient and safe rather than carrying cash around.
  • Record Keeping: Credit card statement provides for monthly statement for the expenses made using the credit card so record keeping and keeping a track of expenses becomes easy.
  • Instant Money: Credit cards satisfy the need for instant money and offers easy repayment when we have cash at our disposal.

Now a days, every bank provides for Credit card facility to its customers, every bank has come up with various schemes and facilities as per the needs and requirements of its customers but here are the reasons why we love our SBI credit card and prefer it over Credit cards provided by all other banks and we bet the facilities provided by SBI Credit Card will probably make you fall in love with it too!

  • Extensive options: SBI Credit Cards offer extensive options for all our requirements, SBI has specifically designed the Credit Cards to cater the needs of both personal and corporate customers.
  • Unique Features: Every credit Card available with us is designed to cater our every need; may it be earning reward points against purchases and repurchasing through earned reward points or earning frequent flier miles or discounts on various lifestyle products and brands or movie tickets or booking a train ticket and the list goes on.
  • Lower Interest Options: SBI Credit Cards offers the lowest Interest Option Schemes amongst its peers for repayment of Credit Amount. SBI offers unique facilities of transferring balances of your ongoing credit balances of other banks Credit Card to your SBI Credit Card and your ongoing EMI’s to SBI Credit Card. We can also avail Felxipay option for the payment of credit balances.
  • Encash: Encash is other unique feature provided to a few select set of SBI Credit Card Holders. Encash is pre-approved money on demand facility to the cardholder. The amount can be over and above the existing credit limit or within the credit limit of the cardholder.
  • Easy Money Availability: As customers of SBI credit card holders a facility of easy money is available for us. In this the easy cash is available equal to the amount balance on our credit card. We can either demand for this money on our doorstep or can have an ATM withdrawal of the balance amount on our Credit Card.
  • Insurance: SBI Credit Card Holders enjoy insurance facilities in various forms like Insurance against Card theft, Hospital cash, Accident Shield Insurance cover and Family health Floater. We can avail any of the above insurance facilities as per our requirement.
  • Utility Bill Payments: Credit Card Facility provides for payment of utility bills at a click of a button at our own convenience.
  • Easy Accessibility: We have easy accessibility to the credit card statements and SBI Card Account anywhere and anytime through SBI card online, Go Mobile App or Simply through an SMS. 24*7 Service is available to us on tip of our fingers.

The below figure depicts the various credit card products that SBI has on offer:


SBI Credit Cards Family

The utter luxury of variety of options, features and benefits simply makes us fall in love with our SBI Credit Card. Lastly, we would like to just one thing – Try SBI Credit Card ones and we bet you won’t leave it forever!!!!!