What is the Minimum CIBIL Score Required for a Loan Against Property

If you are considering a Loan Against Property, you have likely come across the term 'CIBIL Score'. To get approved for a loan with favourable lending terms, having a strong CIBIL score is of utmost importance.

The CIBIL score is a score assigned to you by the Credit Information Bureau (India) Limited (CIBIL), one of the country’s most reputed credit bureaus. Your CIBIL score summarises various aspects of your credit health and history – all points lenders factor in before sanctioning a high loan amount at a low interest rate. The bureau issues a 3-digit score based on its evaluation, ranging from 300 to 900. The higher your score is, the stronger your credit profile is.

Also Read: What is a Credit Score?

Parameters that are Considered in Your CIBIL Score Calculations

There are several parameters that weigh in on the calculation of a CIBIL score. These include:

• Payment History: Your past repayment history is one of the most important factors that the bureau evaluates.
• Credit Exposure: Also known as the credit utilisation ratio, it refers to the ratio of credit you’re utilising against the credit limit available to you. If your patterns show a higher range of credit utilisation, you may be deemed as a high-risk loan case.
• Credit Diversification: The CIBIL Bureau also makes a note of how long you’ve been credit-active and how well you handle your credit obligations. Having a good balance of secured and unsecured credit is also said to be a case in your favour.
• Hard Inquiries: Hard inquiries are the credit inquiries that a lender makes into your credit report. Every inquiry registers negatively on your score, and hence making multiple loan requests is advised against, as it increases the chances of hard inquiries from the potential lender’s end.

Most lenders consider a score of 750 and above a good CIBIL score and tailor their offerings accordingly. Here is a scoring matrix that can help you assess your credit score:

Bajaj Housing Finance offers attractive deals on Loans Against Property, starting at 9.40%* p.a. for eligible salaried and professional applicants.

Your CIBIL score is a significant part of your loan application. Having a score of over 750 can open doors to better lending terms. Here are the benefits you stand to gain with an ideal CIBIL score:

• Higher Loan Eligibility
• Attractive Interest Rates
• Sizeable Loan Sanctions
• Comfortable Repayment Tenors
• Higher Negotiating Power

Borrowers should check their CIBIL score online before making their Loan Against Property application, so they can stall the process to enhance their scores first. This activity may reduce your chances of rejection and help you secure more competitive terms. Here’s how you can check your score online:

1. Visit the official CIBIL website.

2. You will be asked to create an account to gain access to your free annual credit report.

3. Fill in the requested details and move to the identity verification stage.

4. Key in the OTP sent to your verified phone number.

5. You will be redirected to the main CIBIL website dashboard so you can login again.

6. Click on ‘See Your CIBIL Score’ to check your CIBIL score.

Also Read: How to Check Your Credit Score for Free

*Terms and conditions apply.