I APPLIED FOR LOAN AGAINST PROPERTY for DDA JANATA FLAT ALLOTED in 1988. WHILE I AM SECOND OWNER (HOLDING CONVEYANCE DEED FROM ALOTTEE) OF FLAT. SUBMITTED COMPLETE FILE TO BANK WITH ALL RELEVENT DOCUMENTS AND A CHEQUE FOR PROCESSING FEE AS REQUIRED BY BANK OFFICER. THE BANK DOES NOT PROVIDE ME ANY ACKNOWLEDGEMENT / RECEIVING OF FILE WHILE I ASKED BANK MANY TIMES TO ACKNOWLEDGE. THE BANK SEND THE LOAN REJECTION LETTER AFTER 8 WEEKS BUT NO REASON WAS SHOWN IN THE LETTER. SHOULD I ASK THE BANK THE REASON FOR REJECTING THE LOAN.
You have the right to get the reasons for rejection in writings. Ask them to give you the reason in writing. The lenders are likely to reject the loan application if the borrower has defaulted in making the payments for loans / credit cards in the past and the same is reflected in the records of CIBIL.
In order to find out the reason for your applications for loan being rejected, you must first check your CIBIL report by applying for the same on https://www.cibil.com/accesscredit.htm along with a fees of Rs.154/-. From the transactions reported in your CIBIL report, you will be able to find out the reason for such refusal. In case there are any errors in the report, please identify the errors in the report and then raise the dispute online on their website. In case of errors, please inform the concerned bank / lender also with details about the errors reported in your CIBIL report along with the relevant documentary proofs. In case the error is genuine, the lender is supposed to rectify the same and send the updated report to CIBIL.
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.
A review of your CIBIL report will thus help you in finding the real problem.