Why banks are rejecting loan requests ? In COVID 19 New Norms
Why banks are rejecting loan requests ? With covid-19 hitting incomes and jobs, lenders have become more circumspect about the repayment capacity of borrowers and tightened norms . Those working in sectors directly affected by covid, new borrowers and those having low credit scores are the worst hit . Ahmedabad-based Mohit Jain, 29, applied for a home loan in February at a housing finance company, but his application was rejected recently. The loan processing got delayed when Mr. Jain, an Business exhibition Stall Designor , changed his job in March and the country went into a lockdown. In May, he reopened the process, but a few days later his loan application was rejected. “They denied the loan saying the norms had changed," said Mr. Jain , who was not given a specific reason. Pankaj Upadhyay, 54, who lives in Nadiad, a small town Gujarat, applied for a personal loan with the same public sector bank with which he has had a salary account f