Over the past few years, the number of people opting for a Home Loan to fund the purchase of their home has increased considerably. However, with this, have also increased cases of Home Loan default. Lenders, therefore, have become quite cautious about choosing the right borrowers. Lenders screen candidate for Home Loans based on several factors, such as income profile, age, etc. However, the most important of all the factors that affect a borrower's Home Loan eligibility for a Home Loan is their credit score.
What is Credit Score?
In India, there are four credit information bureaus - Equifax, Experian, CRIF Highmark and TransUnion CIBIL - that collect information indicating a borrower's attitude towards credit. The most well-recognized of these credit information bureaus is TransUnion CIBIL. TransUnion collects information about borrowers from various lending institutions and based on the information gathered, they assign everyone a credit score known as CIBIL score. The CIBIL score is a three-digit number ranging between 300 and 900. The closer one's CIBIL score is to 900, the higher their creditworthiness and loan repayment capacity.
Is a good CIBIL score mandatory for Home Loan approval? The answer is yes. Let us see how CIBIL score affects one's chances of Home Loan approval.
Read Also: Know What CIBIL Score Is Considered Good for a Home Loan
How Does One's CIBIL Score Impact One's Chances of Home Loan Approval?
Let us look at how lenders treat applications from people with credit scores belonging to different ranges.
Credit Score Between the Range of 800 and 900
If your credit score lies between this range, it means you are someone who pays all credit card bills and EMIs on time. Further, you are also someone who keeps their credit utilization ratio low. You are an ideal borrower for a lender considering your high creditworthiness and excellent repayment capacity.
If your credit score lies in this range, lenders will vie to have you as their client. You will get the best Home Loan deals with low interest rates and high loan amounts. You will have high negotiating power with your lender and your loan application will also get instant approval.
Also Read: How Can I Raise My Credit Score From 360 to 800 Within a Year?
CIBIL Score in the Range of 750 and 800
If your CIBIL score lies in this range, the lender will perceive your creditworthiness and repayment capacity as good. Within this category falls individuals who have not been bad borrowers but have also not been ideal.
Thus, if you belong to this category, your Home Loan application will get approved. However, your lender will see some risk in lending you the money. They will make up for this risk by charging you a high interest rate or offering you a lower Home Loan amount than you are eligible for.
Credit Score in the Range 625 and 750
This is a fair credit score. This means you are someone who has paid most bills and EMIs on time but have also missed a few every now and then. For the lender, there is risk involved in lending you money for chances of default are high. Thus, if you fall in this category, your loan application will receive approval only if you add a co-applicant or guarantor who vouches to cover up for you should you ever default. This co-applicant or guarantor must be someone with an excellent credit score and stable income.
Credit Score Under 625
If your credit score is below 625, lender will be hesitant to approve your Home Loan application, even if you add a co-applicant or guarantor. This is a low credit score that says lending money to the concerned borrower is risky business and must be avoided.
So, before you apply for a home finance or any other loan product, check your credit score before beginning the application process. Here's how you can check your credit score online.
How to Check Your CIBIL Score Online?
To check your CIBIL score online, simply go to CIBIL's official website and look for the 'Get Your CIBIL Score' option. You will then be asked to provide certain details about you, such as name, registered mobile number, PAN details. Enter these details and click on 'Accept and Continue.' Thereafter, you will get an OTP on your registered number. Enter this OTP and enter your dashboard. There, you will find the option to check your CIBIL score. Once you click on this option, you will be redirected to myscore.cibil.com. Once there, simply login and you will be able to see your CIBIL score.
Also Read: How to Check CIBIL Score with PAN Card for Free, in 3 Steps
Final Words
Whether you are applying for a Home Loan or a Loan Against Property, check your CIBIL score before beginning the Home Loan process. If your CIBIL score is below 750, work on bettering your credit report first and then apply for a loan.
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

[N][T][T][N][T]
HMDA Approval Status Check – A Complete Guide for Homebuyers2025-10-07 | 4 min

[N][T][T][N][T]
Understanding the Date of Possession in Property Deals2025-10-08 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Square Feet to Gaj: A Quick Guide for Loan Against Property Applicants2025-04-02 | 2 min

home+loan Home Loan
[N][T][T][N][T]
IGR Odisha: A Guide to Online Property Services and Registration2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding eNACH Mandates: Meaning, Benefits, and How it Works2025-04-03 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Conveyance Deed: Meaning, Types, Purpose, and Key Differences2025-03-06 | 3 min

home+loan Home Loan
[N][T][T][N][T]
BBMP: Full Form, History, and Role in Bangalore’s Governance2025-03-20 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding GWMC Property Tax: Payment Methods, Calculation, and Benefits2025-03-13 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Partition Deed: A Comprehensive Guide to Its Meaning, Format, and Registration Process2025-04-01 | 4 min

loan+against+property Loan Against Property
[N][T][T][N][T]
A Guide to Kaveri Online Services Portal for Property Registration in Karnataka2025-04-01 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
How to Pay MCD Property Tax in Delhi2025-04-21 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Stamp Duty and Registration Charges in Tamil Nadu2025-05-08 | 6 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding SDMC Property Tax: A Guide to Online and Offline Payment Methods2025-05-08 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Equitable Mortgage vs Registered Mortgage: Key Differences Explained2025-04-30 | 2 min

[N][T][T][N][T]
Home Loan Processing TAT – Everything You Need to Know2025-10-06 | 3 min

[N][T][T][N][T]
BDA Property Tax in Bangalore – A Complete Guide2025-10-01 | 6 min

[N][T][T][N][T]
Jantri Rate Gujarat – A Complete Guide to Land Valuation2025-09-30 | 4 min

[N][T][T][N][T]
DLC Rate Rajasthan – What You Need to Know2025-09-29 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Khasra Number Explained: How to Find It2025-01-03 | 2 min

[N][T][T][N][T]
Understanding NOC in Property Transactions2025-09-29 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Token Money: Its Importance and Key Considerations2025-01-16 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Bigha in India: Convert 1 Bigha to Square Feet, Acres, and Hectares2025-01-31 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Gift Deeds: A Comprehensive Guide to Registration and Documentation2025-01-29 | 2 min

[N][T][T][N][T]
7 Ways to Manage Household Waste and Live Sustainably2025-09-26 | 3 min

[N][T][T][N][T]
Decoding Bigha to Square Metre Conversion in India2025-09-26 | 3 min

[N][T][T][N][T]
Minimum Annual Income for Home Loan – What You Need to Know2025-09-25 | 4 min

[N][T][T][N][T]
Maximising Tax Savings with Home Loans and Rent Payments2025-09-24 | 4 min

[N][T][T][N][T]
How to Save for Your Dream Home in India?2025-09-23 | 3 min

[N][T][T][N][T]
Can You Get a Home Loan Right After Starting a New Job?2025-09-23 | 4 min

[N][T][T][N][T]
How to Get a Home Loan for Your Dream Home in India?2025-09-23 | 5 min

home+loan Home Loan
[N][T][T][N][T]
What is Fractional Homeownership?2025-06-25 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Should You Use Your Annual Bonus to Prepay Loans? Here’s What You Need to Know2025-06-25 | 6 min

home+loan Home Loan
[N][T][T][N][T]
How to Use a Prepayment Calculator Effectively?2025-06-26 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Key Benefits of Availing of a Home Loan2025-06-26 | 4 min

home+loan Home Loan
[N][T][T][N][T]
How Home Loan Rates Are Determined – What You Should Know2025-06-26 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Concept of Freehold Property in India2025-07-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Make Your Home Loan Work for You: A Simple Tax Declaration Guide2025-07-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
What is a Good CIBIL Score Range and Why Does It Matter?2025-07-03 | 7 min

home+loan Home Loan
[N][T][T][N][T]
4 Steps to Avoid Identity Theft and Credit Fraud2025-07-03 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Removing Credit Enquiries from CIBIL – What You Should Know2025-07-04 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Simplified Guide to Land Records in Odisha: Bhulekh Odisha ROR and BhuNaksha Verification2025-02-27 | 3 min

home+loan Home Loan
[N][T][T][N][T]
CIBIL MSME Rank Explained – Why It Matters for Your Loan Against Property Application2025-07-07 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Get Commercial CIBIL Report – A Guide for LAP Applicants2025-07-07 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Mutation of Property: Meaning, Process, and Importance2025-03-20 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Possession Certificate: Meaning, Importance, and Application Process2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the ECN Number in Your CIBIL Report2025-07-08 | 3 min

home+loan Home Loan
[N][T][T][N][T]
CIBIL Score Rules – What Every Home‐Loan Applicant Should Know2025-07-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Top-Up Loan, Personal Loan, and Gold Loan: Understanding the Differences2025-04-11 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Your Chances of Getting a Home Loan with a Pre-Qualified Offer2025-09-10 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Practical Tips to Improve Your Home Loan Eligibility2025-09-09 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Eligibility for Rs.35,000 Salary in India2025-09-09 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Applying for a Home Loan When Your Salary is Paid in Cash2025-09-09 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding How Home Loan Amount Depends on Salary in India2025-09-08 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Decoding the Right Home Loan Amount for Your Dream Home2025-09-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Getting a Home Loan When You Don’t Have Form 162025-09-15 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Much Home Loan Can I Afford in India?2025-09-15 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Tips for a Home Loan in India – Your Complete Guide to a Smooth Application Process2025-09-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Rs.90 Lakh Home Loan EMI – A Complete Guide for Homebuyers2025-09-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Circle Rate vs. Market Rate – Understanding the Difference2025-06-17 | 4 min

home+loan Home Loan
[N][T][T][N][T]
What is the Ideal Home Loan Tenure?2025-09-05 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Minimum Salary Criteria for Affordable Home Loans2025-09-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Advantage of a Fixed-Rate Mortgage Loan2025-09-11 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Registration of Home Loan Agreement Explained2025-09-10 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Validity of a Pre-Qualified Home Loan – Everything You Need to Know2025-09-10 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Home Loan Eligibility: Rs.10 Lakh on Rs.15,000 Salary2025-09-15 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Locking Your Interest Rate with a Dual Interest Rate Home Loan – A Smart Way to Begin2025-09-17 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Lock Your Interest Rate with a Dual Interest Rate Home Loan2025-09-17 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility in India – How Much Can You Actually Borrow?2025-09-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Stamp Duty on Home Loan in India – What You Need to Know Before Buying a Property2025-09-12 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility on Rs.28.5 Lakh Income in India2025-09-16 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Easy is a Home Loan Balance Transfer to a New Lender?2025-09-16 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Home Loan Balance Transfer Process2025-09-16 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Is It Safe to Buy a RERA-Approved Apartment in India?2025-09-22 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the RERA Impact on Home Loans in India2025-09-22 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Selling a Property with an Ongoing Home Loan: What You Need to Know2025-09-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility for Salaried Professionals with Limited Work Experience2025-09-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Improve Your CIBIL Score for a Home Loan in India?2025-09-19 | 3 min

cibil Cibil
[N][T][T][N][T]
Check CIBIL Score with PAN Card for Free, in 3 Steps2024-02-27 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Advantages for First-Time Home Buyers2023-07-14 | 4 min

cibil Cibil
[N][T][T][N][T]
How Long Does It Take to Improve a CIBIL Score2023-03-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Roles of Co-borrower, Co-signer, and Co-owner in Home Loans2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
A Guide to Applying for DTCP Approval for Patta Land Online2025-01-13 | 6 min

cibil Cibil
[N][T][T][N][T]
Impact Of a Co-Applicant’s CIBIL Score On Your Home Loan Application2023-01-20 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Square Feet to Centimetre Conversion for Interior Design and Construction2025-03-27 | 2 min

[N][T][T][N][T]
Difference Between Pledge vs. Hypothecation vs. Mortgage2025-09-01 | 4 min

[N][T][T][N][T]
What Does it Mean to Pledge Your Property for a Home Loan?2025-09-01 | 4 min

[N][T][T][N][T]
How to Manage Your Home Loan When Interest Rates Change2025-08-29 | 3 min

[N][T][T][N][T]
Understanding Home Loan Pre-Closure2025-08-29 | 6 min

[N][T][T][N][T]
Factors That Influence Top-up Loan Interest Rates2025-08-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Pick the Best Home Loan Tenure that Suits Your Budget2023-06-29 | 5 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]
Understanding Home Loan Settlement: What You Need to Know2025-03-13 | 2 min

cibil Cibil
[N][T][T][N][T]
Easy Ways to Maintain a Good Business Credit Score2024-01-10 | 5 min

[N][T][T][N][T]
Plot Loan vs. Home Loan – Understanding the Difference2025-08-18 | 5 min

[N][T][T][N][T]
Home Loan for a Resale Property – Your Complete Guide2025-08-18 | 6 min

[N][T][T][N][T]
Home Loan Basics – A Friendly Guide for First-Time Buyers2025-08-14 | 3 min

[N][T][T][N][T]
Land Loan vs. Home Loan – Understanding the Key Differences2025-08-14 | 2 min

[N][T][T][N][T]
Salary Certificate for Home Loan – Your Complete Guide2025-08-14 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Things to Avoid When Switching Your Home Loan2025-04-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Transfers: Unlocking Better Rates and Terms2025-05-07 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Property Valuation for Home Loans in India2025-03-13 | 2 min

[N][T][T][N][T]
NRI vs. Indian Resident Home Loans2025-03-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
New Home Loan Subsidy Scheme: A Simple Guide for First-Time Homebuyers2025-04-14 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Home Construction Loan Application Guide2025-03-18 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Eligibility Guide for PMAY Urban 2.0: Credit Linked Subsidy Scheme (CLSS) Explained2025-01-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How Your Bank Account Statement Affects Your Home Loan Eligibility