Your Income Is Eligible but the Bank Rejected the Property. What Happens Next?

About this guide

One of the most confusing home-loan moments is hearing two statements that seem to contradict each other: “Your profile is eligible.” “We cannot fund this property.” There is no contradiction. A home loan has at least two approvals happening together: the lender has to be comfortable with you as a borrower and with the property it will take as security. You can have a strong salary, clean repayment history and comfortable EMI capacity — and still face a property rejection. Borrower approval is not property approval When a lender assesses you, it looks at income, employment or business profile, existing EMIs, credit history, age, requested amount and repayment capacity. When it assesses the property, the questions are different: Who owns it today? Is the title chain acceptable? Can the lender create a valid mortgage? Are required approvals and plans available? Does the actual property broadly match the approved documents? Is the property marketable and acceptable under lender policy? What value is the lender prepared to use? RBI's mortgage-related framework repeatedly emphasises…