What is the Minimum CIBIL Score Required for a Loan Against Property?-Banner_WC
If you’re in the market for a Loan Against Property, the term ‘CIBIL Score’ is probably not new to you. To get approved for the loan with favorable lending terms, having a strong CIBIL Score is of utmost importance.
The CIBIL Score is a score awarded to you by the Credit Information Bureau (India) Limited (CIBIL), one of the country’s most reputed credit bureaus. Your CIBIL score summarizes various aspects of your credit health and history – all points lenders factor in before sanctioning a high loan sum 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?
Here are parameters that weigh in on 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 utilization ratio, it refers to the ratio of credit you’re utilizing against the credit limit available to you. If your patterns show a higher range of credit utilization, 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 favor.
- Hard Inquiries: Hard Inquiries are the credit inquiry 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 725 and above a good CIBIL score and tailor their offerings accordingly. Here is a scoring matrix that can help you assess your credit score.
|CIBIL Score Range||Credit Grade|
|330 – 550||Bad|
|550 – 750||Moderate|
|750 – 900||Ideal|
Bajaj Housing Finance offers excellent Loan Against Property deals, starting at 10.10%* p.a. to eligible salaried and professional applicants.
Your CIBIL Score is a critical part of your loan application. Having a score of over 725 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:
Visit the official CIBIL website
You will be asked to create an account to gain access to your free annual credit report
Fill in the requested details and move to the identity verification stage
Key in the OTP sent to your verified phone number
You will be redirected to the main CIBIL website dashboard so you can login again
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