Debt Counselling: Sanjay Agarwal

I earn Rs 1 lakh a month. My Cibil score is 575, though I have never borrowed. And, because of this, a private bank refused me a housing loan. How do I find the problem?
Cibil score is only one of the factors considered for loan approval. A housing loan comes under the 'secured' category and has high probability of approval, which should not get adversely impacted by lack of a credit history. Also, having a Cibil score means banks have some credit history in your name. You may obtain your report from Cibil and have it rectified, provided none of the loans guaranteed by you is in default. After this, you should ask the bank for reasons and convince them .

I have two personal loans and two credit cards. I have always paid all the instalments on time. I want to apply for an education loan for my daughter. A colleague said I would not get another loan because I already have four credit products to my name.
The number of credit lines availed is not a limiting factor for getting more credit. What is important is your conduct in previous repayments and ability to pay a higher EMI on the basis of your income.

My wife and I are repaying housing loans of Rs 50 lakh and Rs 30 lakh, respectively. We want to purchase a villa in Bengaluru for Rs 80 lakh. Two banks have rejected our application, saying we can't take a third loan, though my wife's and my credit scores are above 700.
Just because you both have taken loans doesn't disqualify you from taking another, since your repayment record appears decent. But the approval of another loan depends on various factors such as your free cash flows to pay the new EMI, proposed downpayment, length of your remaining service, etc. You should ask the reason for rejection and try to address the banks' concerns.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Today, Sanjay Agarwal, executive vice-president (SME and retail business), Arcil, answers your questions