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CIBIL Score for Home Loan

CIBIL score indicates the creditworthiness of a borrower. Most lenders require a CIBIL score in the range of 700 to 900 for home loans. If you have a good credit score, you can avail of an LTV (Loan-to-Value) ratio of 80% of the property’s cost as a loan amount. An excellent CIBIL score can get you the low interest rate on a home loan.

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Minimum CIBIL Score Required for Home Loan

Usually, the minimum CIBIL score for home loan preferred by lenders is 700 to 900. However, in some cases, they may also accept a home loan application with a credit score of 650 or above as the housing loan is a secured form of credit.

Benefits of Good CIBIL Score for Home Loan

CIBIL score plays a crucial role if you wish to apply for a home loan or any kind of loan or credit cards. A good CIBIL score helps you improve loan eligibility and get higher LTV at minimum interest rate. Ii is basically a three-digit numeric representation of a borrower’s creditworthiness. The credit score for home loan calculation is based on the borrower’s past repayment track record. Therefore, deciding whether to offer a home loan or not to an applicant becomes easy for the lender. CIBIL score required for home loan is usually 700 or above. If you are applying for a home loan, it is most important to have a good credit score.

Having a good credit score for home loan has several benefits as mentioned below:

  • If you have a good credit score, the chances of getting a home loan become much higher. This is because the chances of repayment are higher for the lender as they depend on your credit score to judge your creditworthiness and repayment capability.
  • One of the most important benefits of having a good CIBIL score for home loan is that it can get you the lowest interest rate on a home loan.
  • Usually, applicants with a good credit score have higher chances of getting the best home loan deals. For instance, you might get a concession on interest rate or processing fee.
  • Having an excellent credit score gives you more negotiation power as the lenders will be happy to provide you a housing loan.
  • You can avail of a higher loan amount if you have an excellent credit score for home loan. This will result in fulfilling your housing-related requirements efficiently.
  • With a great credit score, the home loan process becomes easier and faster. 

Also Check: SBI Home Loan CIBIL

CIBIL Score Required for Home Loan from Different Banks

Every bank has its own set of eligibility norms for housing loans. The CIBIL score requirement may vary from bank to bank depending on the borrower’s profile, banking relationship and other factors. Following is the table for CIBIL score required for home loan from different banks:

State Bank of India (SBI)

CIBIL ScoreRate of Interest (p.a.)
800 or above6.65% – 7.15%
750 - 7996.75% – 7.25%<
700 - 7496.85% – 7.25%
650 – 6996.95% – 7.45%
550 - 6497.15% – 7.65%
NTC/No CIBIL/ -16.85% – 7.35%

PNB Housing Finance Ltd.

CIBIL ScoreRate of Interest
800 or above6.99% - 7.65%
775 - 7997.35% - 7.95%
750 – 7757.35% - 7.95%
725 - 7507.65% - 8.30%
700 - 7257.85% - 8.60%
650 - 7008.95% - 9.60%
Up to 6509.15% - 9.65%
New to credit CIBIL above 1709.15% - 9.65%
New to credit CIBIL equal to or less than 1708.60% - 9.20%

Also Check: HDFC Home Loan Cibil Score

Ways to Improve CIBIL Score for Home Loan

If you have a low credit score, don’t worry. You can always enhance your CIBIL score by taking some measures. Following are some useful tips on how to improve CIBIL score for a home loan:

  • Pay your dues timely: Make sure that you pay your current EMIs or credit card bills on time to get better credit score for home loan. You can set monthly reminders to avoid missing your payments. With timely payments, you can definitely improve your CIBIL score as it presents you as a responsible borrower.
  • Maintain a low Credit Utilization Ratio: You can request your bank to increase the limit of your credit card, which will help you maintain a low credit utilization ratio and eventually improve your credit score. Also, keep your credit usage controlled by utilizing as less credit as possible. Lower credit utilization for long periods shows that you are capable of handling additional credit. It will increase your CIBIL score for home loan and make it easier for you to get a home loan approval.
  • Keep a healthy credit mix: It is advisable to maintain a healthy credit mix to improve your CIBIL score for a home loan. It means having the right combination of secured and unsecured loans. People with too many unsecured loans usually have lower CIBIL scores. The minimum CIBIL score for home loan should be at least 700.
  • Keep a track of your credit report: Make sure you check your credit report frequently to improve your CIBIL score. Doing frequent credit score check will eliminate the chances of any error being recorded in the report related to your payments, EMIs, etc. It happens many times that a wrong loan transaction is registered on the individual’s name. If you find any discrepancy in your credit record, report it to the credit bureau for immediate correction. Even a single mistake can tarnish your credit score, making it difficult for you get a home loan.
  • Don’t close your old accounts: Do not close the old loan/credit card accounts as the lenders will analyze your repayment capacity through it by checking how wisely you managed your credits in the past.

Steps to Check Credit Score for Home Loan

You can access your CIBIL score and report online by visiting the official website of CIBIL. Follow the steps given below to check your entire CIBIL report along with the CIBIL score:

  • Open the official website of CIBIL. 
  • Fill in the online application form by entering the required details like your name, date of birth, address, contact number, income, identity proof, address proof, and loans taken by you. You can also check CIBIL score by PAN card.
  • After filling in all the required details and submitting the form, you will be directed to the payment page. 
  • Here, you will have the option to pay the charges of Rs. 470 by using your credit card, debit card or net banking.
  • After the successful payment, you will be directed to the authentication page. 
  • Here you will have to answer 3 to 5 questions about your loans and credit cards to proceed further.
  • Once you have identified yourself and your authentication is successful, CIBIL will send your score within 24 hours through e-mail.

You can also get a free credit score check as CIBIL provides you one CIBIL Score and Report once a year without any charge.

Impacts of Credit Score on Home Loans

Having an excellent or poor credit score can have a major impact on your home loan application. Your credit score impacts your home loan in the following ways:

  • A low or poor CIBIL score range can often lead to the rejection of your home loan application. That is because the lender may consider your profile as a risky one. Applicants with poor CIBIL score add on to the risk factor for lenders. 
  • The minimum CIBIL score for home loan should be 700. If your credit score is between 600 to 700, you may still get approval on your home loan, however, the rate of interest will be higher than the ones offered to individuals with a higher credit score.
  • If an applicant has a low credit score, the lender may not take the risk of lending a home loan for a longer-term and hence, the applicant may get the loan for a shorter tenure. Getting a home loan involves a huge amount and for many people, repaying such a big amount can be impossible in a short period. 
  • Having a not-so-impressive CIBIL score for home loan may also affect the loan amount eligibility of the borrower.

Also Check: Experian credit score

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FAQs

Can I get a home loan if my CIBIL score is 500?

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Getting a home loan with a CIBIL score of 500 is very difficult as most lenders prefer minimum CIBIL score for home loan as 700 or above (at least 650 in some cases). Certain NBFCs (non-banking financial companies) may offer you a home loan with a score of 500. However, the interest rate will be high in that case. You can apply for a home loan with a co-applicant for CIBIL score calculation

Is 700 a good CIBIL score for home loan?

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Yes the CIBIL score of 700 is considered goof for secured loans like home loans. Most lenders offer home loans with a CIBIL score of 700 or above as it is the minimum CIBIL score for home loan requirement. 

Can I get a home loan with a low CIBIL score?

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Yes, you can get a home loan with a low CIBIL score. However, the interest rate will be high in that case. In such scenarios, you can apply for a home loan with a co-applicant who has a good CIBIL score and sufficient income. The minimum CIBIL score required for home loan is 700 or more.

Does your CIBIL score affect home loan approvals?

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Yes. Your CIBIL score has a major impact on your home loan approval. Having a good CIBIL score for home loan (i,e. 700 or more) can increase your chances of getting a housing loan approval at an affordable interest rate. Applicants with low or poor CIBIL scores are at the higher risk of getting rejection of their loan application. Even if their application is approved, the interest rate charged on the loan can be extremely high, making the loan costly. 

Can a CIBIL defaulter get a home loan?

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If you are a CIBIL defaulter, obtaining a home loan will be difficult. So, you must enhance your credit score for home loan first. You may do so by paying off any outstanding loan EMIs or credit card debts. 

Can I get a home loan if my CIBIL is bad?

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The CIBIL score required for home loan is 700 or above. Getting a home loan with a bad CIBIL score is very difficult. Even if you get one, it will come with a high-interest rate. You can apply for a home loan with a co-applicant if your score is low or poor.

Which bank does not check CIBIL for a home loan?

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Some cooperative banks do not check CIBIL for a home loan.

Can I check my CIBIL score for free for home loan?

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Yes. There are many online portals where you can check your CIBIL score required for home loan for free. Even CIBIL provides you one CIBIL Score and Report once a year without any charge.

Follow the steps given below to check your entire CIBIL report along with the CIBIL score:

  • Open the official website of CIBIL. 
  • Fill in the online application form by entering the required details like your name, date of birth, address, contact number, income, identity proof, address proof, and loans taken by you. 
  • After filling in all the required details and submitting the form, you will be directed to the payment page. 
  • Here, you will have the option to pay the charges of Rs. 470 by using your credit card, debit card or net banking.
  • After the successful payment, you will be directed to the authentication page. 
  • Here you will have to answer 3 to 5 questions about your loans and credit cards to proceed further.
  • Once you have identified yourself and your authentication is successful, CIBIL will send your score within 24 hours through e-mail.

How much CIBIL score is required to get a home loan from SBI Bank?

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CIBIL score required for home loan approval in SBI Bank is 700 or above.

What is credit score?

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The answer to the question of what is credit score is that it is a 3-digit number ranging between 300 to 900 that represents your creditworthiness based on a level analysis of your credit files. A credit score is primarily based on a credit report typically sourced from credit bureaus. There are mainly four credit bureaus in India that provide credit scores, i.e. TransUnion Credit Information Bureau (India) Limited or CIBIL, Equifax, Experian and CRIF Highmark.