CIBIL Score for Home Loan-Banner_WC
The CIBIL score is one of the first things any lender checks when they receive a Home Loan application, as it is an accurate insight into an individual’s credit and repayment history and highlights their creditworthiness.
Logically, the higher your CIBIL Score is, the better are your chances of being approved for a sizeable loan amount with a lower Home Loan interest rate. The CIBIL score is authorised by the Credit Information Bureau (India) Limited, a body licensed by the Reserve Bank of India.
If you are planning to apply for a Home Loan, we recommend that you check your CIBIL Score and employ the means to enhance it, if it is below the lender’s eligibility criteria. This could mean clearing off existing debts and ensuring that your information on the CIBIL website is updated. It not only enhances the quality of your application but also minimises the chances of your application being rejected.
Bajaj Housing Finance offers competitive terms to applicants who hold strong credit profiles with CIBIL scores over 750. Applicants whose CIBIL score is higher than 750 stand a higher chance of being approved for a Home Loan starting as low as 8.30%* p.a. (salaried and professional applicants).
The purpose of a CIBIL Score is to give a consolidated summary of your financial health to interested parties, and in the case of a Home Loan approval – it is essential for a lender to determine the terms they may offer you.
To enhance the chances of your Home Loan approval, you can also check your credit score eligibility beforehand with our Home Loan Eligibility Calculator. With a good CIBIL score, you stand the chance of securing the most competitive housing loan interest rate.
There is no way to calculate your CIBIL Score on your own, and individuals must rely on the credit agency for their score. The agency considers the following factors while awarding you a CIBIL Score:
- Your part repayment history
- Your credit utilization habits
- Your income to expenditure ratio
- Your outstanding debt obligations
- Your credit exposure
To check your CIBIL Score, you can enter your details on the official CIBIL website and benefit from the free annual report that the agency offers everybody.
The minimum CIBIL Score required for Home Loan approval is lender-specific, but it is difficult to get a Home Loan with a score of 650 and below. The higher your CIBIL Score is, the better chances you have to benefit from the lender’s most competitive Home Loan offerings.
To reach your desired CIBIL Score, you can focus on the following parameters:
- Pay your loan EMIs and credit card bills on time
- Prepay loans when you can
- Avoid making multiple loan enquiries simultaneously
- Limit your credit utilisation ratio
- Fix errors in your CIBIL report
- Avoid excessive borrowing
*Terms and conditions apply
Cibil Score For Home Loan_PAC