For several aspiring borrowers, the homeownership journey begins with securing Home Loans. With the right financing, purchasing your dream home can become easier. However, availing of a housing loan requires you to meet certain eligibility criteria determined by your lender. One of the most important factors that affect your eligibility for a loan is your CIBIL score.
What is CIBIL Score?
The CIBIL score is a three-digit number between 300 and 900 that indicates a borrower’s repayment capacity and creditworthiness. A good CIBIL score indicates high creditworthiness and high repayment capacity. Therefore, borrowers who have a high CIBIL score get approved for loans quickly. Further, such borrowers also get highly beneficial loan terms and conditions. People with a low CIBIL score, find it difficult to get approved for a loan.
In this article we look at how a cheque bounce affects CIBIL. However, before that, let us understand what a bounced cheque is.
What is a Bounced Cheque?
A bounced cheque, also known as a dishonoured cheque, is a cheque that remains unpaid due insufficient funds, information mismatch, stop payment order, or incorrect date on the cheque. A bounced cheque can impact your CIBIL score negatively.
How does a Bounced Cheque Affect a Borrower’s CIBIL Score?
One of the most common reasons why cheques bounce is insufficient funds in the account of the borrower. A bounced cheque does not have a direct impact on the borrower’s CIBIL score. However, if one or more than one cheque of yours have bounced in the past, this information will be there on your credit report. When you apply for a Home Loan, your lender will pull out your credit report to assess your creditworthiness and when they see records about bounced cheques, they may feel convinced that lending money to you is not a great idea altogether. Further, borrowers must know that while a one-time cheque bounce will not affect your CIBIL score, repeated cases of cheque bounces may lead to your credit score going down.
What is the Impact of a Bounced Cheque on Your Credit Score?
Financial institutions do not report ‘bounced cheques’ to credit rating agencies. So, if a couple of your cheques bounce, do not worry too much. However, if your bounced cheques are leading to you missing EMIs and credit card bill due dates, your CIBIL score will most certainly be impacted. So, a bounced cheque does not have any direct impact on your credit score. However, it may indirectly lead to a decrease in your CIBIL score.
Also Read: 10 Factors That Affect Your Home Loan Eligibility
Lenders require borrowers to have a CIBIL score of at least 750 to be eligible for a Home Loan in India. If you do not have the required CIBIL score, here's what will happen.
- If you have had too many bounced cheques, which in turn, has led to you missing way too many EMIs and credit card bill due dates, your CIBIL score would have gone down considerably. If your CIBIL score is below 650, it is quite likely that no lender will be willing to offer you a loan. In this case, you will either have to add a co-borrower to your loan application or buy mortgage insurance to convince your lender of your ability to repay loan on time.
- If you have missed only one or two EMIs, your CIBIL score would have not gone down so much. If your CIBIL score is between 700 and 750, it won't be difficult for you to get approved for a loan. However, you may find yourself repaying the loan at a high interest rate. Further, your lender may also ask you to make do with a loan amount slightly lower than what you are eligible for and ask you to pay this loan money over a shorter loan tenor.
Also Read: How to Improve CIBIL Score Above 800
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.
Trending Articles
home+loan Home Loan
[N][T][T][N][T]
Benefits of Submitting a Digital Home Loan Application in Current Times2023-12-20 | 4 min
tax Tax
[N][T][T][N][T]
Top Benefits of Using an Online Income Tax Calculator2023-12-28 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Best Credit Score for Home Loans & How to Improve Yours2023-08-31 | 6 min
home+loan Home Loan
[N][T][T][N][T]
Get Your Down Payment Funds Ready with These 5 Easy Steps2023-03-20 | 5 min
cibil Cibil
[N][T][T][N][T]
Boost Your Credit Score By Minding The Factors That Affect It2023-03-20 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What Happens If Home Loan EMI Bounces? Know the Consequences2024-07-11 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Would it be Possible for Me to Apply for a Second Mortgage?2024-05-22 | 3 min
cibil Cibil
[N][T][T][N][T]
How to Check Your CIBIL Score for Free and What to Do If There Are Errors in It2024-06-05 | 4 min
[N][T][T][N][T]
Checklist of Documents Required for Home Loan2024-02-07 | 5 min
cibil Cibil
[N][T][T][N][T]
Check CIBIL Score with PAN Card for Free, in 3 Steps2024-02-27 | 5 min
cibil Cibil
[N][T][T][N][T]
CIBIL Score Charges & Services You Must Know2023-04-04 | 2 min
cibil Cibil
[N][T][T][N][T]
What to Know About CIBIL Score 2.02024-06-20 | 3 min
tax Tax
[N][T][T][N][T]
Can I Claim Home Loan Tax Benefits on an Under-Construction Property?2024-05-23 | 5 min
tax Tax
[N][T][T][N][T]
How to Claim Tax Benefits on Joint Home Loans2024-07-10 | 4 min
cibil Cibil
[N][T][T][N][T]
Some of the Common Credit Mistakes to Avoid2023-03-21 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Advantages of Including a Co-Applicant on Your Home Loan2024-01-21 | 7 min
home+loan Home Loan
[N][T][T][N][T]
A Complete Guide on the Benefits of Joint Home Loan2022-11-16 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Home Loan Balance Transfer: Benefits, Eligibility, and More2024-05-15 | 3 Min
home+loan Home Loan
[N][T][T][N][T]
Can I Take a Home Loan and a Personal Loan Together?2024-01-17 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Advantages for First-Time Home Buyers2023-07-14 | 4 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Top Benefits of a Loan Against Property Over Collateral-Free Loans2024-01-09 | 4 min
home+loan Home Loan
[N][T][T][N][T]
An Essential Guide to Refinancing a Home Loan2024-04-22 | 5 Min
home+loan Home Loan
[N][T][T][N][T]
All About Home Loan Balance Transfers2024-06-04 | 4 mins
home+loan Home Loan
[N][T][T][N][T]
All You Need to Know About Home Loans2023-01-19 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Should I Apply for a Pre-Approved Home Loan or an After Property Finalisation Loan?2024-03-15 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Are Registration Charges Compulsory When You Opt for a Home Loan?2024-04-15 | 5 min
home+loan Home Loan
[N][T][T][N][T]
How to Connect with Bajaj Housing Customer Care2023-06-27 | 5 Min
home+loan Home Loan
[N][T][T][N][T]
Difference Between Bank Rate and Repo Rate2023-09-22 | 5 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Fees and Charges on Your Loan Against Property2024-02-16 | 8 min
loan+against+property Loan Against Property
[N][T][T][N][T]
3 Different Loan Against Property Types You Should Know About2024-02-13 | 5 Min
cibil Cibil
[N][T][T][N][T]
Will a Loan Settlement Ruin My CIBIL Score?2023-03-21 | 4 min
tax Tax
[N][T][T][N][T]
What Does It Mean to Have a CIBIL Score of -12023-06-16 | 4 min
cibil Cibil
[N][T][T][N][T]
How can I Remove Loan Inquiry from CIBIL Credit Report2024-01-22 | 5 min
cibil Cibil
[N][T][T][N][T]
How To Improve CIBIL Score After A Payment Default?2024-03-29 | 4 min
cibil Cibil
[N][T][T][N][T]
Here Is How a Bounced Cheque Can Affect Your CIBIL Score2023-06-06 | 5 min
cibil Cibil
[N][T][T][N][T]
How to Increase Your CIBIL Score Above 800: 6 Proven Methods2024-01-24 | 4 min
[N][T][T][N][T]
5 Ways Home Loan Borrowers Can Lower their Home Loan EMI2023-01-04 | 4 min
home+loan Home Loan
[N][T][T][N][T]
6 Ways to Reduce Your Home Loan Interest2024-03-20 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Factors to Consider Before Applying for a Home Construction Loan2022-12-02 | 5 min
tax Tax
[N][T][T][N][T]
Know all About Top Up Loans and How to Avail of Tax Benefits2024-07-16 | 5 min
home+loan Home Loan
[N][T][T][N][T]
Benefits of a Home Loan2023-02-20 | 4 min
tax Tax
[N][T][T][N][T]
Tax Benefits on Home Loans for Self-Employed Individuals: What You Need to Know2024-06-07 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Factors Determining Your Home Loan Eligibility2024-03-13 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Home Loan Burden Management: Five Tips2022-06-27 | 3 min
home+loan Home Loan
[N][T][T][N][T]
How to Pay Off Your Home Loan Quicker2024-03-11 | 4 Min
[N][T][T][N][T]
Everything You Must Know About NRI Home Loans2024-02-16 | 3 min
[N][T][T][N][T]
NRI Home Loans: 5 Things to Keep in Mind Before Applying2024-02-15 | 4 min
[N][T][T][N][T]
Myths and Facts About NRI Home Loans in India2024-02-15 | 4 min
tax Tax
[N][T][T][N][T]
How to Save Tax for Salary Above 30 Lakh?2023-08-07 | 6 min
tax Tax
[N][T][T][N][T]
How to Claim Home Loan Tax Exemptions and HRA Together2023-03-22 | 5 min
tax Tax
[N][T][T][N][T]
Difference Between Old vs. New Tax Regime2024-08-22 | 5 min
tax Tax
[N][T][T][N][T]
Income Tax Structure in New Regime: New Tax Exemption Limit 20232024-05-08 | 4 min
tax Tax
[N][T][T][N][T]
How Much Tax Can be Saved Under Sections 80C, 80D, and 80G?2024-05-15 | 5 min
tax Tax
[N][T][T][N][T]
How to Save Tax Between Rs 20 to Rs 25L Salary in India2024-05-23 | 6 min
tax Tax
[N][T][T][N][T]
8 Useful Income Tax Exemptions for Salaried Employees2024-04-18 | 7 min
tax Tax
[N][T][T][N][T]
Should You Get a Home Loan to Save Your Taxes?2024-02-01 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Section 80EE: Claim Deductions on the Home Loan Interest Paid2024-04-25 | 6 min
[N][T][T][N][T]
Everything You Need to Know About Home Loan Tax Benefits2024-04-23 | 6 min
tax Tax
[N][T][T][N][T]
How to Avail Maximum Home Loan Tax Benefit in India in 2023?2024-05-13 | 6 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Things to Do If Your Loan Against Property Application Gets Rejected2023-02-14 | 5 min
cibil Cibil
[N][T][T][N][T]
Does Applying for Credit Affects One's CIBIL Score?2024-03-14 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Smart Things to Consider Before You Apply for a Home Loan2022-12-14 | 5 min
cibil Cibil
[N][T][T][N][T]
10 Effective Strategies for Boosting Your Credit Rating2023-03-24 | 6 min
home+loan Home Loan
[N][T][T][N][T]
What Factors Decide Your Home Loan Interest Rates?2024-05-29 | 6 min
[N][T][T][N][T]
Loan Against Property or A Home Loan: Know What You Need2024-06-11 | 5 min
[N][T][T][N][T]
Top 5 Ways to Avail of Tax Benefits on Home Loans2024-02-16 | 5 min
[N][T][T][N][T]
NRI Home Loans: Unveiling the Unique Aspects2024-02-14 | 7 min
[N][T][T][N][T]
A Guide for NRIs Considering Property Purchase in India2024-02-14 | 7 min
home+loan Home Loan
[N][T][T][N][T]
7 Common Problems You May Face While Applying For Home Loan2024-01-18 | 7 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Pay-off Your Debt with Bajaj Housing Finance Loan Against Property2024-02-14 | 5 min
tax Tax
[N][T][T][N][T]
Claim Tax Exemptions with These 3 Loan Options2023-02-22 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Reasons Why a Housing Loan Application May Be Rejected2024-02-14 | 3 min
cibil Cibil
[N][T][T][N][T]
How Does Being A Loan Guarantor Affect Your Credit Score?2024-03-13 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Types of Home Loan Charges2024-01-22 | 3 Min
home+loan Home Loan
[N][T][T][N][T]
Should You Take a Home Loan Even If You Have Enough Money to Buy a House?2024-01-30 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Home Loan EMI Calculator Benefits and It’s Features2024-02-21 | 4 min
loan+against+property Loan Against Property
[N][T][T][N][T]
A Guide to Loan Against Property for Doctors2022-06-27 | 5 Min
home+loan Home Loan
[N][T][T][N][T]
Understanding Loan-to-Value Ratio (LTV) and its Calculation2023-11-28 | 4 Min
loan+against+property Loan Against Property
[N][T][T][N][T]
Loan Against Property for Doctors: Interest Rates and Charges2023-11-24 | 6 Min
loan+against+property Loan Against Property
[N][T][T][N][T]
Why Loan Against Property Can be a Good Credit Option for a Startup Business?2023-12-22 | 5 Min
[N][T][T][N][T]
A Complete Guide to Check Credit Score Easily for Free2024-05-02 | 3 min
home+loan Home Loan
[N][T][T][N][T]
Difference Between Home Loan and Personal Loan: Which is better?2024-03-04 | 4 min
[N][T][T][N][T]
6 Smart Tips to Increase Your Home Loan Eligibility2024-06-27 | 4 min
[N][T][T][N][T]
5 Essential Things You Need for a Home Loan Approval2024-05-08 | 3 min
[N][T][T][N][T]
7 Benefits of Taking a Home Loan in India2024-06-19 | 3 min
cibil Cibil
[N][T][T][N][T]
What's Considered a Healthy Credit Mix?2024-06-11 | 3 min
cibil Cibil
[N][T][T][N][T]
What Distinguishes CIBIL Score from CIBIL Report?2024-04-11 | 3 min
home+loan Home Loan
[N][T][T][N][T]
What Is Home Loan Eligibility and How Is It Calculated2024-07-11 | 6 min
cibil Cibil
[N][T][T][N][T]
What is Credit Mix and How to Boost Your Credit Score?2023-03-27 | 7 min
cibil Cibil
[N][T][T][N][T]
Does CIBIL Score Affect Loan Against Property Eligibility?2023-02-15 | 7 min
home+loan Home Loan
[N][T][T][N][T]
Everything You Need to Know About Top-up Loans on a Home Loan2024-04-09 | 6 min
cibil Cibil
[N][T][T][N][T]
What Is a Good Credit Score for a Home Loan?2022-12-28 | 5 min
cibil Cibil
[N][T][T][N][T]
Things That Can Go Wrong with Your CIBIL Report2023-03-15 | 5 min
cibil Cibil
[N][T][T][N][T]
How a Good CIBIL Score Can Help You Celebrate the Festive Season Better2024-03-19 | 5 min
home+loan Home Loan
[N][T][T][N][T]
How to Get a Better Interest Rate on Your Home Loan2024-01-04 | 5 min
cibil Cibil
[N][T][T][N][T]
How Can Your CIBIL Score Help in Negotiating Better Home Loan Deals2023-05-18 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Get a Home Loan Without Visiting Branch: A Step-by-Step Guide2024-03-20 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Complete Guide to Securing a Attractive Interest on Home Loans2024-01-23 | 3 min
cibil Cibil
[N][T][T][N][T]
Here’s What You Can Do to Improve Your CIBIL Score2023-03-16 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Home Loan Refinancing: What, Why, and Things to Remember2024-06-17 | 5 Min
tax Tax
[N][T][T][N][T]
How to Avail of Tax Benefits on a Loan Against Property2024-06-13 | 5 Min
cibil Cibil
[N][T][T][N][T]
Top 10 Reasons For Low CIBIL Score & How To Improve It2024-03-01 | 5 min
home+loan Home Loan
[N][T][T][N][T]
5 Great Ways Women Can Benefit from Taking a Housing Loan2024-01-16 | 5 min
cibil Cibil
[N][T][T][N][T]
Five Reasons Why a Bad Credit Score Could Lead to Loan Rejection2024-01-22 | 5 min
cibil Cibil
[N][T][T][N][T]
How Does Your Digital Footprint Affect Your CIBIL Score?2024-03-20 | 5 min
cibil Cibil
[N][T][T][N][T]
How Can I Get My ECN Number in CIBIL?2024-01-09 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What is Foreclosing a Home Loan? These are Some of the Do’s and Don’ts2023-12-20 | 6 min
tax Tax
[N][T][T][N][T]
10 Useful Income Tax Deductions for FY 2022-232024-02-21 | 6 min
cibil Cibil
[N][T][T][N][T]
Ways You Can Improve your Credit Score for a Small Business2023-03-01 | 5 min
tax Tax
[N][T][T][N][T]
5 Tax Savings and Other Advantages You Can Get When You Apply for Home Loans2024-02-14 | 6 min
cibil Cibil
[N][T][T][N][T]
Reasons Why Your CIBIL Score Is Going Down2024-04-10 | 4 min
home+loan Home Loan
[N][T][T][N][T]
How to Get a Housing Loan Approved Instantly?2024-04-10 | 5 min
home+loan Home Loan
[N][T][T][N][T]
What Is a Pre-Approved Home Loan and How Should You Get It Done?2024-03-12 | 5 min
cibil Cibil
[N][T][T][N][T]
How Business Loans Affect Your CIBIL Score & How to Improve the Same2024-03-13 | 6 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Short vs. Long Loan Against Property Tenor - Which Is Better?2024-05-07 | 4 min
home+loan Home Loan
[N][T][T][N][T]
Consider These Factors Before Foreclosing Your Home Loan2024-04-16 | 3 min
tax Tax
[N][T][T][N][T]
What is a Property Tax in India and How is It Calculated?2024-03-13 | 4 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Fees and Charges on Your Loan Against Property2024-04-10 | 6 min
cibil Cibil
[N][T][T][N][T]
How Does Missing One Payment Affect Your CIBIL Score?2024-05-15 | 4 min
cibil Cibil
[N][T][T][N][T]
Ways to Improve Your Credit Score with a Credit Card2024-02-02 | 4 min
cibil Cibil
[N][T][T][N][T]
What Factors Do Not Affect Credit Scores?2024-02-28 | 7 min
home+loan Home Loan
[N][T][T][N][T]
What Affects the Interest Rate on Your Home Loan2024-03-13 | 5 min
loan+against+property Loan Against Property
[N][T][T][N][T]
Easy Ways to Pick the Right Loan Against Property Tenor2024-05-14 | 3 min
cibil Cibil
[N][T][T][N][T]
How to Check, Calculate, and Improve CIBIL Score?2024-01-11 | 2 min
home+loan Home Loan
[N][T][T][N][T]
10 Smart Steps for Effective Home Loan Management