HDFC Home Loan CIBIL Score

CIBIL Score is a reflection of an individual’s credit profile and indicates his/her past credit behavior. The Score is based on the periodic credit information conveyed by banks and other financial institutions. The lenders can judge the repayment capacity and creditworthiness of an applicant by the credit score and the collective credit information available in the credit report. Every lender stipulates a threshold score to be eligible for a loan. The minimum CIBIL Score for HDFC Home Loan is 720 to 750. You must know that a score between 750 to 900 is considered a good credit score range.

Credit Rating Agencies in India have made the choice of reliable prospective borrowers very easy for the lenders by giving credit information of the prospective borrower for the past three years. Lenders provide periodical credit information about their borrowers to the Credit Information Bureaus.

A score within the range of 300 to 900 is given based on various factors like repayment history, number of existing loans, credit mix, etc. Credit Information Bureaus play a very significant role in mitigating credit-related risk. On receiving a loan application, the lenders can draw the Credit Report online and judge the financial health of the prospective borrower based on the credit score. A score between 750 and 900 is considered a good credit score range, and lenders will be happy to extend financial help to a customer with this score range.

Of the 4 Credit Rating Agencies in India, i.e., TransUnion CIBIL, Experian, Equifax and CRIF, the rating that is popular is of TransUnion CIBIL, and the minimum CIBIL Score for HDFC Home Loan is between 720 and 750.

CIBIL Score is an integral part of the loan application process. This three digits numeric summary of credit history is the measuring scale for the financial discipline of the applicant. The Score ranges between 300 to 900, and the nearer your Score is to 900, the better are the chances of approval of your loan application.

All the lenders have stipulated a minimum CIBIL Score for availing of any kind of loan, and so has HDFC Bank. The HDFC Home Loan CIBIL Score should be between 720 and 750. The bank will appraise your loan eligibility based on the HDFC Home Loan eligibility CIBIL Score and various other factors as per the credit policy of the bank.

CIBIL Score is the result of the mathematical algorithm applied by the Credit Information Bureau to the credit information received from various financial institutions to quantify the creditworthiness. The first step after the loan application is submitted to HDFC will be to draw the credit report. HDFC does not do CIBIL Score calculation for Home Loan, but will interpret the CIBIL Report as per the information contained.

The CIBIL report will provide information about the name of the lender, category of credit facilities availed, loan amount, the date of availing, the account number, the outstanding balance, date of last payment, loan past due, the date of closure of any account (if the status is closed), the number of credit enquiries made, etc.

If your score is 750 and above, HDFC will have a positive impression with respect to your financial discipline and creditworthiness and will proceed with the appraisal. If your credit score is below 750, the bank may hesitate to consider your loan application, and you might have to work towards improving the Score.

The appraisal of an individual’s repayment capacity and financial health is done on the basis of the CIBIL Score. The CIBIL Score calculation is done based on the information regarding the type of loans availed, the number of existing loans, repayment pattern, and the number of credit enquiries made. A score above 750 depicts the prudence in financial management and responsibility in repaying dues promptly. So HDFC has stipulated a CIBIL Score range to entertain any loan application received for a Home Loan. The HDFC Home Loan CIBIL Score range required is 720 to 750.

Lenders would normally prefer to extend credit facilities only when they are convinced about the recovery of the debt. This will happen only when the applicant is financially sound and is prudent in financial management.

CIBIL Score is the existing means to estimate the creditworthiness and financial responsibility of the applicant. In credit business parlance, if you have a score above 750, you are considered a low-risk borrower who would not default repayments. HDFC considers or rejects a Home Loan application depending on the CIBIL Score. If the rating is within the stipulated HDFC Home Loan eligibility CIBIL score, i.e., 720 to 750, the application will be considered for further appraisal. So it is essential to check your CIBIL Score before approaching the bank for a Home Loan.

HDFC stipulates a Credit Score range for extending any kind of credit facility. The CIBIL Score implication will be higher while considering an unsecured loan, as the risk attached to unsecured debt is higher than a secured loan, as there is no collateral security back-up.

The minimum Credit Score for HDFC Personal Loan or any other unsecured loan is 750 and above. A proposition with a high CIBIL Score, i.e., 750 and above, is considered to be of low risk, and the approval for such proposals will be quicker. However, the required CIBIL Score to avail of the HDFC Car Loan is 700 and above.

While there is no defined minimum CIBIL Score required for HDFC Credit Card, the ideal HDFC Bank Credit Card CIBIL Score is 750 to get a quick approval with better offers. A credit score of 750 will reflect the financial stability and responsible repayment behaviour, and you will be placed within the low-risk borrower bracket.

This does not mean that applicants with a credit score below 750 will not be issued a credit card. The bank will, on a case-by-case basis, issue a low CIBIL Score Credit Card but with a lower credit limit.

Make sure to check your CIBIL Score before you apply for a credit card and approach the bank only if you have a higher score in order to get a higher credit limit with better deals and eligibility for premium credit cards.

Do a CIBIL Score check with PAN Card online before you approach HDFC Bank for a Home Loan. The reason being that if your credit score is below the required HDFC Home Loan CIBIL Score, you can aim to scale up the Score by setting right the setbacks. With a good CIBIL Score for a Home Loan, you will be entitled to several benefits while availing of an HDFC Home Loan.

• Better chance of loan approval: A higher credit score reflects the credit behaviour, clean repayment track, and a lower risk of loan default. This will make the bank feel comfortable in extending the loan and will increase the chance of loan approval.
• Lower interest rate: Generally, the rate of interest is applied based on the Credit Score and the internal credit rating of the bank. So with a higher CIBIL Score, the rate of interest applied will be comparatively low.
• Negotiating Power: With a high CIBIL Score, you will have proven your loan repayment track and financial stability. You will be a sought-after customer and will have the advantage of negotiating for better interest rates, discounted processing fees, and other charges.
• Higher Quantum: The bank will be willing to provide a higher loan quantum if you have a high CIBIL score.