How can someone with a poor CIBIL score acquire a home loan?

Your CIBIL score is an important factor in evaluating whether or not a bank would lend to you.

Your CIBIL score will also play a role in determining which bank will provide you the best home loan interest rate. If a house buyer plans to acquire a home utilizing housing finance, they must have a strong CIBIL score.

What is a CIBIL score, and how do you get one?

Your creditworthiness is determined by your CIBIL score. Credit bureaus in India issue you a credit rating based on your credit history. Perhaps one India’s four credit bureau organisations, TransUnion CIBIL, provides financial info to banks. Its acronym has become associated with credit rating because it is the most well-known credit bureau in the country.

• Throughout India, credit bureaus assign a credit score that ranges from 300 to 900.
• Borrowers with a credit score of over 750 typically receive the best home loan interest rates from banks.

What constitutes a satisfactory CIBIL score?

Throughout India, credit bureaus assign a number that ranges from 300 to 900. A CIBIL score of 700 or more is regarded as satisfactory.

Which CIBIL score is the highest?

It’s possible that establishing a powerful credit score won’t be enough to get you the best home loan interest rate. You’ll need a high CIBIL score to qualify for this. Borrowers with a credit score of over 750 are eligible for the lowest home loan interest rates offered by almost all Indian institutions.

Is it possible to obtain a home loan with a poor CIBIL score?

Because home loans are secured loans (your home serves as collateral), banks are willing to lend to borrowers with less-than-perfect credit. They may, though, levy a default risk in this scenario.

For better grasp this, consider SBI home loans as an instance. SBI, India’s biggest lender, is now giving a 6.7 percent house loan interest rate to applicants with a CIBIL score of 750 or higher. SBI will impose 6.8% interest on your house loan if your CIBIL score falls between 700 and 749. It implies you’ll pay 10 basis points more in interest on your loan.

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