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:// www.cibil.com/accesscredit. 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. rbi.org.in. 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 18.104.22.168 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. rbi.org.in 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.