A good way to do this is by paying your credit card dues in full and on time. In case you want a substantial loan, you will also have to increase your income level and pay all your previous outstanding loans.

These are not the only reasons your loan application could be rejected. There are several others factors that could influence this decision; for some of these you may not even be responsible directly. However, you need to be aware of these, so that if such a situation arises, you can tackle it and obtain a loan without any botheration.

You are a compulsive job hopper

It is a common practice among the current generation to switch jobs every couple of years. This, in case of banks, implies instability and could become a reason to reject your loan request. Banks place a high value on job stability and often insist that an applicant needs to be employed with a particular company for a certain minimum period to be eligible for a home loan. This period usually varies from one to three years.

Tip: Stick with a company for at least a year if you are planning to apply for a loan. If you want to switch jobs, do so after your loan is sanctioned. This minimum time period is acceptable only during the initial years of your career. As you gain experience, it will be better if you work for a longer period, say, more than three years, at a company to account for job stability.

Your residential address is on the defaulter list

If you live in the same house as someone who is a loan defaulter, it's probable that your residential address is on a watch list, which could lead to your loan application being rejected. The defaulter could be a tenant, relative or a family member, who may have slipped up on a loan payment or may not have paid his credit card dues and, hence, was reported to the national credit bureau.

Tip: Take up this issue with your relationship manager at the bank. Indicate that the previous tenant (if it is the case) does not have a personal relationship with you. In case of a family member, you will need to stress that he or she is not dependent on you.

Your profile doesn't fit the bank's policy

Each bank is guided by its internal policies. If some income or debt profiles or geographical areas are listed in their policy guidelines as not appropriate for lending, the bank will not be able to fund your loan. Tip: In case your credit profile does not fulfil the criteria listed by the bank, you could provide additional security.

This could be in the form of a guarantor, a co-borrower who has a high credit score, collateral such as insurance policies, fixed deposits, stocks and mutual fund portfolio, property, or proof of your repayment ability (in case you run your own business).

If the area you live in is outside the geographical limit that is specified by the bank, you should try applying to the nearest bank or branch in a location that is on the bank's approved list.

You want to purchase an old building

Some banks do not lend money if the apartment or house you want to buy is more than 20-30 years old. This criterion, that is, the age of the building, varies across different banks.

Tip: The value of the land will always be considered while deciding on the funding for older buildings. Try to increase the down payment and add some form of security to negotiate for a lesser loan amount.