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.
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.
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:
Also Check: SBI Home Loan CIBIL
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 Score||Rate of Interest (p.a.)|
|800 or above||6.65% – 7.15%|
|750 - 799||6.75% – 7.25%<|
|700 - 749||6.85% – 7.25%|
|650 – 699||6.95% – 7.45%|
|550 - 649||7.15% – 7.65%|
|NTC/No CIBIL/ -1||6.85% – 7.35%|
PNB Housing Finance Ltd.
|CIBIL Score||Rate of Interest|
|800 or above||6.99% - 7.65%|
|775 - 799||7.35% - 7.95%|
|750 – 775||7.35% - 7.95%|
|725 - 750||7.65% - 8.30%|
|700 - 725||7.85% - 8.60%|
|650 - 700||8.95% - 9.60%|
|Up to 650||9.15% - 9.65%|
|New to credit CIBIL above 170||9.15% - 9.65%|
|New to credit CIBIL equal to or less than 170||8.60% - 9.20%|
Also Check: HDFC Home Loan Cibil Score
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:
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:
You can also get a free credit score check as CIBIL provides you one CIBIL Score and Report once a year without any charge.
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:
Also Check: Experian credit score
MyMoneyMantra is India’s largest phygital loan distributor. With trust of 70 lakh customers, we assure hassle free access to the best Home Loans up to 10 crore for housing loan borrowers in India. Our service is 100% free. We use latest technology and AI to serve customers across the length & breadth of our diverse country. Check Eligibility & Apply.
Know how good your score is
Get insights on how to improve it
Unlock offers as per your score
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.
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.
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.
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.
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.
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.
Some cooperative banks do not check CIBIL for a home loan.
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:
CIBIL score required for home loan approval in SBI Bank is 700 or above.
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.