Minimum CIBIL Score For Home Loan That You Must Know!
Home Loan is one of the most opted facilities in our country. The reason being is the lack of homes owned by individuals. It’s 2020 and still, there are a large number of people who are not living in their own homes because of the soaring prices of homes in India. To enable them financially, a number of banks and non-banking financial institutions (NBFCs) provide home loan facilities at an affordable interest rate. But before this, there is one thing that every individual must know - What is the minimum CIBIL score for Home Loan?
A lot of people don’t know about this and always confused about this fact because of the misinformation spread around them. But we want to tell you that this is one of the most important factors when it comes to the home loan given by any lender in our country. In this article, we would cover everything related to this article ranging from what is the minimum CIBIL score for home loan to why lenders check your CIBIL score before approving your home loan application? So, leave everything aside if you are going to take a home loan, and read on!
What is the Minimum CIBIL Score for Home Loan?
When you decide to take a home loan, everything boils down to your CIBIL score. To know what is the minimum CIBIL score for home loan, first, you need to understand what is the CIBIL score? In India, CIBIL Transunion is the leading credit rating agency that tracks the financial record of the individuals and based on that, it releases their credit report. Based on this report, you can get your CIBIL score which is nothing but a three-digit number ranging from 300 to 900. This number defines your overall creditworthiness.
The minimum CIBIL score for home loan is 700 among all the lenders across the country. Though, the CIBIL score does not play that huge role in getting you a home loan as it does in credit cards or personal loans as both of them are unsecured loans, while a home loan is a secured loan. But still, a score of 700 or above is regarded as the ideal CIBIL score for any individual as a high score indicates that you are handling your debt in a disciplined way and paying all your dues on time. Lenders find anything below this score as a poor score.
What’s the importance of CIBIL Score in Getting a Home Loan?
As we told before that CIBIL score does not play that huge role in determining your home loan candidature, but it could work in different aspects of your home loan. The secured nature of the home loan facility prohibits the CIBIL score to be the most important factor. Lenders always check the CIBIL score to minimize the risk factor attached to the credit facility. But in the case of home loan, lenders can fall back into the cushion of your property pledged as the security.
But a high CIBIL score could give you different benefits such as a lower rate of interest as compared to an individual with a poor CIBIL score. Apart from this, you could opt for a higher loan amount with a backup of your CIBIL score of 700 or above. You would also get faster loan approval.
A lot of people don’t know about this and always confused about this fact because of the misinformation spread around them. But we want to tell you that this is one of the most important factors when it comes to the home loan given by any lender in our country. In this article, we would cover everything related to this article ranging from what is the minimum CIBIL score for home loan to why lenders check your CIBIL score before approving your home loan application? So, leave everything aside if you are going to take a home loan, and read on!
What is the Minimum CIBIL Score for Home Loan?
When you decide to take a home loan, everything boils down to your CIBIL score. To know what is the minimum CIBIL score for home loan, first, you need to understand what is the CIBIL score? In India, CIBIL Transunion is the leading credit rating agency that tracks the financial record of the individuals and based on that, it releases their credit report. Based on this report, you can get your CIBIL score which is nothing but a three-digit number ranging from 300 to 900. This number defines your overall creditworthiness.
The minimum CIBIL score for home loan is 700 among all the lenders across the country. Though, the CIBIL score does not play that huge role in getting you a home loan as it does in credit cards or personal loans as both of them are unsecured loans, while a home loan is a secured loan. But still, a score of 700 or above is regarded as the ideal CIBIL score for any individual as a high score indicates that you are handling your debt in a disciplined way and paying all your dues on time. Lenders find anything below this score as a poor score.
What’s the importance of CIBIL Score in Getting a Home Loan?
As we told before that CIBIL score does not play that huge role in determining your home loan candidature, but it could work in different aspects of your home loan. The secured nature of the home loan facility prohibits the CIBIL score to be the most important factor. Lenders always check the CIBIL score to minimize the risk factor attached to the credit facility. But in the case of home loan, lenders can fall back into the cushion of your property pledged as the security.
But a high CIBIL score could give you different benefits such as a lower rate of interest as compared to an individual with a poor CIBIL score. Apart from this, you could opt for a higher loan amount with a backup of your CIBIL score of 700 or above. You would also get faster loan approval.
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