CIBIL Score for Home Loan - Impact of Credit Score on Home Loan
02 Jan 2023
Table of Content
CIBIL Score for Home Loan
Are you looking for information on CIBIL score for home loans? Have you been wondering what is the minimum CIBIL score for home loans and how you can bring your credit score within that range? If so, then you’ve landed on the right page! Continue reading the article to know all there is about CIBIL score for housing loan application.
What is CIBIL score
Established in 2000, the Credit Information Bureau Limited (CIBIL) is a credit information company that maintains records of individuals and organisations. A lending agency/company/bank gives out loans on the basis of the CIBIL score generated.
Does CIBIL Score Affect Home Loan Eligibility
The CIBIL score is basically a three-digit number that ranges between 300 and 900. The higher the score, the greater are your chances of getting a home loan easily. Lenders mandatorily check your credit score to know your creditworthiness when you apply for a home loan.
Here is a quick look at how the CIBIL score impacts your home loan application:
- The CIBIL score is essentially the first impression that your lender gets of you as a borrower
- Borrowers applying for home loans with low CIBIL scores might face a harder time in getting their applications approved
- Having a good or high CIBIL score allows you to get the better interest rate
Can a good CIBIL score help you get a home loan at a lower EMI?
- Having a good CIBIL score when you apply for a home loan not only makes you eligible to get one but also helps you get funding at a lower interest rate.
- Lower EMIs will help bring down the overall cost of your housing loan.
- As we all know, a home loan is long term debt that runs into decades. So, even a small reduction in interest can see you potentially save lakhs of rupees.
Thus, having a higher CIBIL score can prove to be immensely helpful for a housing loan.
Minimum CIBIL Score for Home Loan
CIBIL score is an important factor that determines your loan eligibility. The credit score is directly related to your interest rate, the higher the score the lower the rate of interest. The minimum CIBIL score for a home loan should be 701 and above for seeking a home loan.
How to Improve your CIBIL Score for a Home Loan
Here are a few tips that can enhance your chances of getting a home loan:
• Paying off existing loans:
This is the major tip which will help you increase your chances of getting your home loan sanctioned. Ensure that you are paying your existing EMIs on time regularly and there is no default. If you have a habit of using your credit card, make sure you pay off your entire card debt on a regular basis so that you don’t have to pay any interest on those expenses. In short, pay the whole balance and not just the minimum due.
• Record your variable pay:
Another way to increase your eligibility is by giving the bank proof of your variable pay apart from submitting your income documents.
• Opt for a joint home loan:
You can add your close relatives as co-applicant, while reviewing an application for a joint home loan, the lender considers the income of both the parties. Hence, a combined monthly income will appear higher and increase your chances of getting the loan value you need.
Quick tip: You can use an online tool called the Home Loan EMI Calculator to understand what your monthly payments will look like for a certain loan amount. Knowing what kind of EMIs you can expect will help you plan your finances better. This will save you from defaulting on your payments and help you keep your credit score in good standing throughout the tenure of your home loan.
How to Check CIBIL Score Online
These days, we have become accustomed to the new normal of doing as many things as possible online, from transferring money to someone to applying for cards and opening bank accounts too. In the same way you also check your CIBIL score digitally!
Simply follow these quick steps to easily check your credit score online:
Step 1 -
Go to the official CIBIL website, log in and select “Know Your Score”
Step 2 -
Fill up the digital form that appears and enter relevant details such as your name, date of birth, past loan history, ID proof etc.
Step 3 -
After the form has been properly filled, a payment page will appear. You can choose your preferred form of payment method like debit/credit cards or net banking.
Step 4 -
After successful payment you will have to answer five questions CIBIL asks about your credit history, out of which three need to be correct, in order to get your identity authenticated from CIBIL.
On approval, you will get your credit report mailed to you in the next 24 hours, and you can check your CIBIL score, also existing BOB customer can check their CIBIL score through bob World mobile banking app.
Now you can be the proud owner of your very own dream home with the easy home loan options given by Bank of Baroda. Our home loans have low interest rates, affordable processing fees, and longer tenures too. At Bank of Baroda, you can also enjoy many other benefits of taking a home loan such as a free credit card when you apply for a home loan. Choose from our wide range of home loans including pre-approved home loan, home improvement loan, and home loan takeover scheme, among others. You can check your home loan eligibility online on our website and even apply for your home loan online too. It’s that convenient!
Get in touch with us today to know more.
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
Step by Step Guide on How to Calculate Home Loan EMI
Those who do not have a home to call their own, dream of buying a home. Those who own a home, dream of getting a bigger one. While those who own more than one home in one city, dream of owning homes in other cities too. Then there are dreams of country houses, duplex apartments and villas, the list is endless. But for a first-time homeowner, purchasing a home is fraught with doubts and uncertainties. Home loans are the most feasible option, but not everyone knows how to calculate home loan EMI. The challenges of long-time loan burden discourage many. In today’s age, home loans are a blessing for those who are seriously planning to purchase a home. All you need is willingness, preparation for taking a loan and planning out a way with information and knowledge on managing the monthly instalments while keeping yourself safe from pitfalls. A home is a necessity and with help from home loans, as Marissa Mayer says, even if you can’t have everything you want, you can have the things that matter to you.
Home Loan Eligibility - Guide for Beginners
Buying a house in today's real estate market may seem expensive, but it is not impossible. With Bank of Baroda's Home Loans, you can buy a ready-to-move-in home, an under-construction home or a plot of land and construct house within 36 months. You can even construct a house on any piece of land you own. The bank also provides the necessary finance to renovate your existing property. However, your loan is sanctioned only if you fit the bank's Home Loan eligibility criteria. Let's understand what is Home Loan eligibility, and the various criteria considered by the bank.