Loan application rejected? Check with CIBIL

By | March 29, 2011

If your loan has been rejected, do not panic under such kind of situations. You need to just understand that under what circumstances has the bank rejected :

1. If you have applied for a personal loan or any kind of loan or even a credit card with bank ABC, but earlier you have defaulted with bank XYZ, then, under such situations your loan application is likely to be rejected. However, if you have settled with your ex-bank, and have received a letter of no-settlement, stating that there are no dues left to be settled, then you can approach CIBIL and check if your CIR(Credit Information Report) has been updated or not. You can even use your No-dues settlement letter to show it to the bank from where you wish to avail your loan or credit card.

2. If you have multiple salary accounts, due to change in the organization you work in, close down the ones that are no longer in use. Through this you will be sure that there wont be any kind of charges or penalities that the bank will impose on you. There are a lot of cases where, the salary accounts can turn into savings account, when the account holder keeps them idle for a long time and does not stipulate the information of his change in employer. And by keeping the eventual salary account idle, can have charges like Charges for non-maintenance of minimum quarterly average balance; cash transactions at branch in the event of non-maintenance of QAB-nil for the first specified number of transactions per quarter and thereafter, and penal charges per transaction; cheque books in the event of non-maintenance of QAB-specified amount per cheque leaf and debit card fees for the first account holder as well as joint account holder separately as specified by the bank per annum.

Make sure, you carefully track your credit limits, maintain a good credit score and keep the above said points in mind so as to avoid any such shocks. And if in case the loan application has been rejected and you cannot figure out why, then approach CIBIL and verify your CIR.

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