To start with,Banks are at heavy loss and the reason behind that is “we”. Earlier, i mean to say in 2012-2013 they were approving loans with basic documentation but now the scenario has totally changed. Now that the defaulters have become more, the loan approval is very difficult that too in a nationalized bank? No way. Unless and Until, your documents are clear you will not be getting loans in these banks but when it comes to private bank, they are little better. They will ensure that your loan gets approved only if your cibil score is good. The cibil score should be above 700 to avail loans.
What is meant by Pre-approved Loans?
The name itself says that the loan will be approved in advance based on your credit score. Not all those who have salary will get pre approved loans. If and only if, they have paid all the dues in time without any cheque bounce. Minimum of 3 cheque bounces are allowed but only at certain circumstance. If your salary is getting credited to your HDFC account, then sure shot you will be eligible for pre-approved loans.
The mortage and housing loans are very difficult to get approved nowadays because they ask lot of documentation and people dont have time to get all those things in the mean time. Because of this, they are not trying to apply for a loan in nationalized banks. They usually prefer private banks wherein the bank officials takes all the responsibility to collect the documents from your house and then they will check the eligibility. Suppose, all your documents gets checked you will get immediate dispursal of the amount. Therefore, one thing you should keep up in mind once you take the loan from the bank, ensure you pay it well within the days specified by the bank. Before they give loans they need to think about the recovery. They will first think in that angle and then approve the loans. There are big players who have cheated the banks and have absconded.
We hope this answers most of your doubts regarding Why Banks are not Approving Loans without Proper Documentation? Just in case you have any further questions, you can always ask us in the comments section. Stay connected to us for more such sections and thanks for reading!