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Decline Reason - High debt repayments than monthly income. What does it mean?

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praveensudhakaran

TF Premier
My application was rejected by SBI CARDS by saying door locked at the time of verification(Haven't received any calls, nobody reached on that day as per my CCTV footage). Later rejected multiple times, with the reason Due to internal policy. Recently I got to know from an executive that it is because my debt is higher than my income. My entire debt is 2X of my CTC. My emi is 40% of my take home.

Then what does that mean?
 
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Chaitanya-a said:
SC approved many of my colleagues application easily who were over leveraged in the eyes of SBI. They don't follow this rule religiously.
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Sbi started this afternoon credit limit reduction episode, SCB is doing it for many years now,moat of the applications rejects as DBR(debt burden ratio).
I've seen 100s of cases.
Your experience could be different but sample size also matters.
 
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I have a query now, Let us say my salary is around 1 Lakh per month and I have credit cards with combined limit of 20 Lakhs. If, I want to take Home loan , Is my Home loan approved and howmuch loan I will going to get maximum?
 
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rakee15 said:
I have a query now, Let us say my salary is around 1 Lakh per month and I have credit cards with combined limit of 20 Lakhs. If, I want to take Home loan , Is my Home loan approved and howmuch loan I will going to get maximum?
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I guess they just consider used limit & any other debt/EMIs reflecting on CIBIL.
You can give a particular %age or net salary e g.50% as emi for home loan as other 50% or whatever is decided by bank for your regular expenses.
 
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How do we update our annual income in the CIBIL database? For me, it just mentions salaried, and the income column is blank - hence, maybe I get overleveraged in eyes of SBICards
 
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praveensudhakaran said:
Which channel is better for the negotiation calling customer care or email?
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1st have a face to face convo ( or at least call) with bm/rm that is when you threaten to move HL. Then drop mail one to grievance redressal and one to bm/rm.
Mail is better option as you can attach required docs like spend on regalia, bank statement, HL and bm can directly forward your mail to cluster head, the one who actually gives approval. We can write more convincingly and professionally than rm/bm.

You can also attach your most used card statement. Saying how you plan to transfer some spend to hdfc if offered dcb/infinnia as you want to manage less cards. Don't mention that sbi finds you over leveraged.

Grievance redressal will most likely cancel the request. This is just to show you applied through proper channel. On your mail to grievance redressal you can threaten to move HL. Don't do that with mail to bm. Bm will anyway mention that to CH.

.
 
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sidp said:
1st have a face to face convo ( or at least call) with bm/rm that is when you threaten to move HL. Then drop mail one to grievance redressal and one to bm/rm.
Mail is better option as you can attach required docs like spend on regalia, bank statement, HL and bm can directly forward your mail to cluster head, the one who actually gives approval. We can write more convincingly and professionally than rm/bm.

You can also attach your most used card statement. Saying how you plan to transfer some spend to hdfc if offered dcb/infinnia as you want to manage less cards. Don't mention that sbi finds you over leveraged.

Grievance redressal will most likely cancel the request. This is just to show you applied through proper channel. On your mail to grievance redressal you can threaten to move HL. Don't do that with mail to bm. Bm will anyway mention that to CH.

.
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Thank you very much!
 
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rakee15 said:
I have a query now, Let us say my salary is around 1 Lakh per month and I have credit cards with combined limit of 20 Lakhs. If, I want to take Home loan , Is my Home loan approved and howmuch loan I will going to get maximum?
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In risk management debt and exposure are different. 20L is exposure not debt. Every issuer and for every type of loan there are different criteria.
Technically they should look at both debt and exposure. Your Home/car/student/ ecom emi are fixed. They are your debt. Credit card/OD/BNPL are your variable components. Sometimes they are high and some times they are low. They dont have time to check every credit account. So they would look at overall credit utilization and is there any account with high utilization regularly).
Also it is easier to get HL. Especially if you are buying from a reputed builder in a location where home prices are expected to rise. As in case of Home loan they pay as per stage of development, so their risk is much lower. But if your HL emi is a considerable portion of your net income and your cc exposure is already 20x your net salary, it would be very difficult to get any unsecured loan.
 
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If I were to ask for limit reduction would that affect my standing with the bank? Will it be considered a black mark? Will it be recorded in the credit score? Would this affect any future loan applications or further credit limit increase?
 
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rogerthat said:
If I were to ask for limit reduction would that affect my standing with the bank? Will it be considered a black mark? Will it be recorded in the credit score? Would this affect any future loan applications or further credit limit increase?
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It will only affect your credit score, nothing else. You can always increase limit by submitting itr.
If after cl reduction, your utilization increases significantly, score would decrease. But cl reduction also decreases your exposure, meaning you are less hungry for credit, which will have a positive impact.
 
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deep@vie said:
How long back it was rejected?
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In mid December. Applied on website, vkyc done, office email verified, then got a call from a private looking no and it asked for some company details regarding SC card, told them to mail me on office or private email, will provide there. Next day checked on website and rejected.
 
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