Check CIBIL Score for Home Loan, Effects & Tips

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Check Your Cibil Score for Home Loan Eligibility - Kotak Bank

03 MAY, 2023

The CIBIL score or credit score is an important parameter that determines your home loan eligibility. The score is a numerical representation of your creditworthiness ranging from 300 to 900. It is derived based on the loan repayment history, existing EMIs, credit mix, credit utilisation, etc. The higher your CIBIL score, the better the chances of home loan approval. If you are looking forward to availing of a home loan, it’s advisable to maintain a CIBIL score of 750 or above to boost your home loan eligibility. Banks always check your CIBIL score and a home loan without CIBIL score is not a possibility you can consider. Let’s understand how your CIBIL score affects your home loan eligibility.

Effects of CIBIL Score on Home Loan

A poor credit score may reduce your chances of getting a home loan without any hassles. Whereas, a high credit score helps improve your loan eligibility.

A high credit score can help you secure a loan at a lower interest rate. Since a home loan is a long-term financial obligation, an attractive interest rate can reduce the overall cost of borrowing significantly in the long run.

Lenders may consider you a low-risk applicant if you have a high credit score. This will allow you to avail a high home loan amount with much better terms and conditions.

With a high credit score, it’s also possible to avail of home insurance products at a comparatively lower premium

Doing a CIBIL score check will help you By following most of the above-mentioned tips, you can improve your CIBIL score and home loan eligibility and get approvals for loans easily. Below is a quick guide on how to do a CIBIL score check for a home loan.

How to find out your CIBIL score online?

Follow these steps to do a CIBIL score check:

Step 1: Visit the official website of CIBIL.

Step 2: Click on GET YOUR CIBIL SCORE

Step 3: Pick the subscription of your choice

Step 4: Fill in an online form providing all basic details such as name, address, ID proof, Date of Birth, loan history, etc.

Step 5: Post this, you’ll be redirected to the payment page, wherein you will be required to pay a nominal fee. You can easily make the payment through various modes such as credit cards, net banking, etc.

Step 6: On making the payment, you will be taken to an authentication page. Here, you will have to answer a few questions related to your credit history to authenticate your identity with CIBIL.

Step 7: Post completion of the authentication process, you will receive a detailed CIBIL report on your registered email address within the next 24 hours.

Checking your CIBIL score online is really easy. Make sure you always keep track of it. Also note that as per the guidelines of the Reserve Bank of India (RBI), individuals can fetch a free credit report once in a financial year. If you notice that your CIBIL score is below 750, ensure to work on improving it before applying for a home loan because a home loan without CIBIL score is not approved.

Mentioned below are some proactive measures that can be taken to improve the CIBIL score and satisfy the home loan criteria set by the lender.

Tips to Improve CIBIL Score

If you are already servicing a loan, ensure its timely repayment.
Decrease your credit utilization ratio.
Pay credit card dues on time. Do not close credit cards.
Maintain a mixed bag of credit i.e. secured and unsecured debt.
Check your credit report thoroughly and raise a dispute in case of any errors.
Do not make multiple loan applications.

By following most of the above-mentioned tips, you can By following most of the above-mentioned tips, you can improve your CIBIL score and home loan eligibility and home loan eligibility. So why wait? Check the CIBIL score for home loan, apply for a home loan, and take the first step toward purchasing your dream house, today!

CIBIL Score for Home Loan FAQs

How much CIBIL score required for home loan?

Finding out CIBILscore required for home loan before actually applying for a home loan is a great idea it will help you find out your eligibility for the loan. A good CIBIL score for home loan is anywhere between 650 and 749, but, 650 is the minimum CIBIL for home loan and 750 is a good CIBIL score.

How to calculate CIBIL score for home loan?

Checking CIBIL score online can be done quickly and you get the results in a day. Follow these steps to do a CIBIL score check:

Visit the official website- cibil.com
Enter the details required
Pay the online fee through any online payment options
Complete the authentication process
Your CIBIL score for home loan will be sent to your registered email id within the next 24 hours.

How to borrow a loan if your credit score for home loan is low?

If you don’t have a good CIBIL score for home loan, the best way to borrow a loan would be to include a co-applicant. If your co-applicant has a stable income and a good CIBIL score, you will be very likely to get your home loan approved.

What is the credit score for home loan requirement?

CIBIL for home loan should at least be 650. Anything below 650 is not a good credit score and needs to be improved. A good credit score is important to have because it plays an important role in getting your home loan approved. Financial institutions approve your loan based on your CIBIL score so it is necessary that you build a good credit score for loans in the future.