Can Bank Refuse Loan in Such a Case?

magnet

Active member
#1
I went to a seminar of SP Jain family business management course.

There the orator said if you have a bank account and you haven't borrowed money from it ever in say 10 years. And suddenly because of some financial crunch all your liquid money dries up and you ask for loan, the bank will refuse the same. As you never had a loan track record and your current financial record shows you are in crunch.

Is it true? Then banks can refuse loan under such scenario?
 
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#2
I went to a seminar of SP Jain family business management course.

There the orator said if you have a bank account and you haven't borrowed money from it ever in say 10 years.And suddenly because of some financial crunch all your liquid money dries up and you ask for loan, the bank will refuse the same. As you never had a loan track record and your current financial record shows you are in crunch.

Is it true? Then banks can refuse loan under such scenario?
Banks can refuse a loan without any reason also. It's their money.

Anyway, my personal opinion is that one shouldn't take a loan just for the sake of building up a credit history - it's rather silly in my opinion - in effect, you are taking a loan so that it will help you take a loan in the future.
 

Atiker

Active member
#3
Anyway, my personal opinion is that one shouldn't take a loan just for the sake of building up a credit history - it's rather silly in my opinion - in effect, you are taking a loan so that it will help you take a loan in the future.
To build credit history, get a credit card.

If not splurging, use it to pay utility (bijlee-pani, electricity-water) bills :).
 
#5
Purpose, Income and collateral - essentials for loan

Firstly - Banks can refuse without citing any reasons

Secondly- Getting loans from pvt banks is faster and easier and they will unofficially inform you the reasons for denial

Thirdly -
Personal loan/Car Loan - You can avail of all the following instruments as collateral and definitely get the loan .
- PPF a/c
- NSC
- LIC policies
- EQuity holding (nifty is fine and some midcap(only 50%) of the value)
- ETF's
- Mutual Funds
and if you are desperate Property
Please take personal loan if you are in dire need of money since interest rates are very high

Fourth
Loan for businees that too for working capital is really "difficult" to get..
For this you will have to approach Co-op banks...they take the risk and they also have people to get their dues ..but use this option as last last resort

If you are going to be on the roads or dire medical emergency and you desperately need money and all options are closed...go to private lenders (if you dont know one...approach the grocery shop oweners or dairy owners in your area they will recommend you )
 
#6
The foremost thing for you being able to borrow a loan is having a good credit history. If you have never borrowed money from a financial institution, the bank might reject your loan application due to bad credit history. However, you are input the following points to increase your credit history.

1. Pay outstanding bills
2. Do not remove old accounts from credit
3. Keep credit card balances low
4. Pay bills on time
5. Use credit card to pay electricity bills, DTH recharges, etc.
 
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