image image

Home Loan Starting 6.80%*

image

What is CIBIL Score for Home Loan?

Your CIBIL score is a 3-digit number, ranging from 300 to 900, that summarises your credit history. It is based on the information in your CIBIL report. Since your CIBIL score represents your creditworthiness, lenders consult it before approving loans. Further, with a home loan being a high-value loan, it becomes important to know and maintain the necessary CIBIL score for home loan approvals.

As a borrower, you shouldn’t stop at asking questions like:

  • Is CIBIL score required for home loan?
  • At minimum, what should be CIBIL score for home loan?

Once you know your CIBIL score, focus on improving your CIBIL score and bringing it into the ideal range. This way you’ll get a faster approval and better terms. To learn more, read on.

What CIBIL Score is Good for Home Loan?

What is the ideal CIBIL Score for home loan? The ideal CIBIL score for home loan is 750 or above. Such a score is excellent and keeps your eligibility and approval chances high. It speaks to your diligence and financial readiness. With such a score, lenders usually offer favorable terms like a high loan amount and a competitive interest rate.

What is a good CIBIL score for home loan? For a home loan, a score of 700 and above is good. When you have such a score, lenders will evaluate several other factors like your income and age before giving approval.

Does CIBIL Score Affect Home Loan Approval?

Yes. Since your CIBIL score indicates your financial health, it impacts everything from approval to loan terms. Lenders use your CIBIL score to determine whether you are eligible for home loan or not. They perform a credit enquiry to check the same. With a good CIBIL score you can secure:

  • A quicker approval
  • A larger loan
  • A cheaper interest rate
  • A more flexible tenor

How to Calculate CIBIL Score for Home Loan?

You cannot calculate your CIBIL score manually. CIBIL does so based on factors like:

  • Past performance
  • Credit mix & duration
  • Credit exposure
  • Credit utilisation

Similarly, you cannot calculate the necessary CIBIL score for home loan approvals. You can check your CIBIL score first and then approach your preferred lender to know how much CIBIL score for home loan is required as per their policy.

How to Check my CIBIL Score for Home Loan?

You can check your CIBIL score directly with CIBIL or check your credit score for free via Bajaj Finserv. Once you do so, you can cross-check what CIBIL score is required for a home loan and then either proceed to apply for the loan or improve your score.

How to Improve your CIBIL Score?

To reach the required CIBIL score for home loan, you can do the following:

  • 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
  • Have a healthy mix of secured and unsecured loans
  • Keep tabs on joint, guaranteed, or co-signed accounts

 

What is the Minimum CIBIL Score for Home Loan in India?

The minimum CIBIL score for home loan approval is lender-specific, but it is possible to get a home loan with a score of 650 and above. Before approval lenders will check parameters such as your debt-to-income ratio. Also, the interest charged may be higher if you score is less than ideal.

Now that you know what is CIBIL score for home loan and how much CIBIL score required for home loan in India, proceed to improve your score and secure an affordable home loan.