Tag: home refinance

Why banks ask for loan repayment tracks

Any customer who applies for a home loan with pre owned liabilities will have the experience of banks asking for the repayment track of existing liabilities. It is usually for the reference to the bank that how the customer is repaying his/her existing loan or there are any outstanding EMI’s or over dues on the existing loan. The repayment tracks reflect the banking habits of customer which supports the existing bank in giving the loan. As home loans have a lengthy repayment periods, banks take his existing loan EMI’s into consideration for the calculation of eligibility and for the calculation of home loan EMI to ease the customer in monthly repayment. If the loans are below 6 months to closer of tenure or the customer is interested in closing the loan for availing the home loan then banks do not consider the existing loan for the sanction of home loan. Banks reserves the right to ask for additional documents if needed.

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GiottoPress by Enrique Chavez