HT Estates - - HTESTATES - Harsh Roongta

I set­tled my credit card and per­sonal loan five years ago. My cur­rent Cibil score is above 750. Can I get a home loan?

—Shekhar Sood As many as 90% loans are granted to in­di­vid­u­als hav­ing a score of more than 700 points. Any­thing above 750 is con­sid­ered good and any­thing be­low that is con­sid­ered not so com­fort­able to ne­go­ti­ate for bet­ter in­ter­est rates. But it is not nec­es­sary that you will get a loan just be­cause your score is above 750. If your re­port shows some old de­lays/de­faults that have sub­se­quently been reg­u­larised and hence your credit score is greater than 750, even then you may have trou­ble get­ting a fresh loan. The credit score of more than 750 rep­re­sents a good score. Cibil main­tains records for seven years.

New records of­ten get more weight and gen­er­ally set­tle­ment of credit card and per­sonal dues are set off by your cur­rent good pay­ment history.

The fi­nal de­ci­sion to sanc­tion a loan de­pends on your dis­pos­able in­come, your reg­u­lar house­hold ex­penses and cur­rent credit dues, if any, as well as the agree­ment value of the prop­erty. I ap­plied for a home loan for a DDA Janata flat al­lot­ted in 1988. I am the sec­ond owner of the flat. I had sub­mit­ted all the rel­e­vant doc­u­ments along­with a cheque for the pro­cess­ing fees but the bank did not give me any ac­knowl­edge­ment slip and also re­jected my loan ap­pli­ca­tion af­ter eight weeks with­out cit­ing any rea­son. Should I ask the bank to cite the rea­son for re­ject­ing the loan?

- Sudhakar Menon You have a right to find out why your loan ap­pli­ca­tion was re­jected by the bank. Lenders usu­ally re­ject the loan ap­pli­ca­tion if the bor­rower has de­faulted in pay­ment of loans/credit cards in the past and the same is re­flected in the records of Cibil. To find out why your ap­pli­ca­tion was re­jected, you should first check your Cibil score by ap­ply­ing on https://­cess­credit. htm along with fees of ₹ 154. If ei­ther the bank or the Cibil does not re­spond or act on your re­quest within 30 days of your re­quest, you should file a com­plaint with the bank­ing om­buds­man at www.bankingom­buds­man. I was al­loted a plot by the Jaipur De­vel­op­ment Au­thor­ity. I was to make the pay­ment within 90 days for al­lot­ment. The bank I had ap­proached for the same took more than 90 days to sanc­tion the loan and the pay­ment was de­layed. JDA also im­posed a penalty of ₹ 1,31,000. Can I file a case against the bank in the con­sumer court?

—Jayant Shah Gen­er­ally there is a de­lay in sanc­tion­ing a loan by the bank if the ap­pli­cant is un­able to fur­nish all nec­es­sary doc­u­ments on time. The code of bank’s com­mit­ment to cus­tomers clearly states un­der D that “We will con­vey our de­ci­sion on your loan ap­pli­ca­tion for a limit up to ₹ 20 lakh within 30 work­ing days from the date of re­ceipt of the ap­pli­ca­tion pro­vided your ap­pli­ca­tion is com­plete in all re­spects and is sub­mit­ted along with all the doc­u­ments as per the check­list pro­vided. We will con­vey our de­ci­sion on ap­pli­ca­tions be­yond ₹ 20 lakh within a rea­son­able time frame.”

Since you feel the bank de­lib­er­ately took more than 90 days to sanc­tion your loan, you can ad­dress your griev­ance to the nodal of­fi­cer of the bank, de­tails of which are given on the bank’s web­site. If af­ter four weeks of the com­plaint, the the is­sue is not re­solved, you can com­plain to the bank­ing om­buds­man on the RBI web­site. The link for the same is www.bankingom­buds­man. I have a plot in East of Kailash (Gadi vil­lage). I re­quire ₹ 50 to ₹ 60 lakh for con­struc­tion. The plot is worth ₹ 2 crore. The bank I had ap­plied to for the loan re­jected the ap­pli­ca­tion as the area falls in the neg­a­tive list of the bank. What should I do now?

— Su­man Arora If the pro­posed pro­ject falls in the list of neg­a­tive ar­eas of other banks too, the chances of get­ting fi­nance for the con­struc­tion of the prop­erty seems bleak. You can try ap­ply­ing to the lo­cal co-op­er­a­tive banks for help.

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