10/09/2018
Nayan is 32 and engaged. He has shortlisted a house worth Rs 50 lakh and plans to move into it after marriage. He has applied for a home loan and hopes to get it approved as his credit score is a high 824.
Moreover, he has accumulated savings, wihch he plans to use as down payment. He feels he has everything planned well and does not see any issue in getting the loan. However, to his shock, his loan application is rejected. Why did this happen?
Well it's told in a very good article by Economic Times.
While the credit score mentions how the earlier loans were serviced, it says nothing about the ability to service more loans.