image image

Home Loan Starting 6.70%*


Ways to Get a Loan Against Property with a Low Credit Score

Does Bajaj Housing Finance Extend Loan Against Property to People with a Low CIBIL Score?

A person's CIBIL score indicates their ability to pay back their loan. It is, therefore, not very surprising that financial lending institutions and banks hesitate to lend money to credit defaulters. However, there is some hope for people with a low CIBIL score. Bajaj Housing Finance extends a helping hand to such people by offering loans on residential and commercial properties.

Using our loan against property for CIBIL defaulters facility, people with a low CIBIL score can avail of a secured loan by mortgaging their property. Keep in mind that the loan value is directly proportional to the size of the property. However, since we take a huge risk by extending loans to people with a low CIBIL score, we assess each application on various factors. Here we discuss some of the factors that we consider before approving mortgage loan for CIBIL defaulters.

Factors We Consider Before Extending Loan Against Property to CIBIL Defaulters

It's Always Easier to Get Loans on High-Value Mortgage

Bajaj Housing Finance offers loans up to 75% of a property's present market value, although this number is not set in stone. For people with a low CIBIL score, availing of a loan becomes easier if the property being mortgaged is a high-value property. Thus, in the case of high-value properties, even after the low LTV offered due to low creditworthiness, one can avail of a substantial loan by mortgaging off the property.

Further, our mortgage eligibility criteria are simple and easy to meet. More importantly, we ask for minimal paperwork and documents. Thus, if your low CIBIL score has been a deterrent in your quest for a mortgage loan, apply with Bajaj Housing Finance today.

Preference Is Given to People with High and Stable Source of Income

People with a low CIBIL score but a high and stable source of income are more likely to get their loan against property application approved than people with a low and uncertain source of income. If your creditworthiness is low and so is your income, it is best to apply for a loan along with a co-applicant with a high and stable source of income to improve your chances of loan approval.

Preference is Also Given to People with Low Debt-to-Income Ratio

The debt-to-income ratio weighs a person's liabilities against their income. In simple words, the debt-to-income ratio tells what part of a person's income goes towards meeting their liabilities. Thus, banks and lending institutions do not extend loans to people with a low debt-to-income ratio as well as a low CIBIL score. If you have a low CIBIL score, it is best to increase your debt-to-income ratio by reducing your liabilities before applying for a loan against property.

If the above factors are not working in your favour, know that people with a low CIBIL score and therefore, low creditworthiness can avail of a loan by opting for a high rate of interest on the loan value.Alternatively, you can also consider adopting methods to enhance your score and maximising your chances of seeking a loan against property with favourable terms. If you need funds urgently, apply online for a loan with us today.