HDFC Home Loan Cibil Score

Are you contemplating availing a home loan from SBI? Need details regarding the various schemes under SBI Home Loan? Approach MyMoneyMantra for a quick CIBIL Score check with PAN Card, and if you have the minimum CIBIL Score for HDFC Home Loan, you can apply for the loan and reap the benefits.

HDFC CIBIL Score for Home Loan

CIBIL Score is a reflection of an individuals’ credit profile and indicates his/her past credit behavior. The Score is based on the periodical 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 that is between 750 to 900 is considered a good credit score range

CIBIL Score Required for HDFC Home Loan

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.

Minimum CIBIL Score for HDFC Home Loan

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.

Additional Reading: How to improve cibil score immediately?

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How does HDFC Calculate CIBIL Score for Home Loan?

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.

Additional Reading: How to get loan for low cibil score?

CIBIL Score Range for HDFC Home Loan

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.

Additional Reading: What is Experian cibil score?

Importance of CIBIL Score for HDFC Home Loan

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. 

Additional Reading: Credit score check free online

CIBIL Score Range to Avail Other Loans Offered by HDFC

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 HDFC Car Loan is 700 and above.

Additional Info: Check HDFC Overdraft Facility.

CIBIL Score Required for HDFC Credit Card

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 to 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.

Additional Reading: What is Equifax cibil score?

Benefits of High CIBIL Score to Avail HDFC Home Loan

Do a CIBIL Score check with PAN Card online before you approach HDFC bank for a Home Loan. The reason being 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 Home Loan, you will be entitled to several benefits while availing of 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 proved 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 high cibil score.

Additional Reading: What is CRIF Credit Score?

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FAQs

✅What is the minimum CIBIL Score for a home loan?

The minimum CIBIL Score for a home loan depends on the lender you approach. The Credit Score Range for home loans will generally be 650 to 750. For example, The minimum CIBIL Score SBI Home Loan is 650 to 750, and the minimum CIBIL Score for HDFC Home Loan is 720 to 750.

✅What is the CIBIL score in HDFC Bank?

The CIBIL Score in HDFC Bank is different for secured and unsecured loans. The reason is that unsecured loans are not backed by security, and the recovery process becomes cumbersome in case of default. To avoid the situation, HDFC Bank will easily approve the loan applications with a good CIBIL Score of 750 and above for unsecured loans. A higher score indicates a clean repayment track and a lower risk of default.

For secured loans like Home Loans, the credit score range will be 720 to 750, and for HDFC Car Loans, the desired CIBIL Score will be 700 and above.

✅Can I get a home loan with a 650 credit score?

The credit score range is different for different lenders. There are lenders in the market who have a Credit Score Range of 650 to 750 for Home Loans. You can approach these lenders if your Score is 650, and your proposal may be considered provided you comply with the other eligibility criteria set by the lender.

Alternatively, you can strive to increase the credit score by paying the EMIs of existing loans and credit card dues on time and clearing the overdue in all your existing loans. By doing so, you will be widening the choice of lenders and can get a home loan with better offers.

✅How can I increase my CIBIL Score from 600 to 750?

It is necessary to maintain a high CIBIL Score if you need easy access to better credit facilities. To increase your CIBIL Score from 600 to 750, you should do the following.

  • Consolidate Loans: If you have too many loans along with heavy credit card dues, consolidate these dues and avail of a loan to pay off the dues. By doing so, you will reduce the EMI burden, which will enable prompt repayment.
  • Streamline Credit Card Dues: If you have opted for revolving payment for Credit Card dues, you will be accumulating the dues along with a heavy burden of interest. Clear the credit card dues in their entirety and start making full payment of the dues instead of the minimum due.
  • Limit Credit Card Utilization: Manage your credit card utilization at less than 30%. Higher usage of the card indicates your dependency on credit for your financial needs and will have a negative impact on the credit score.

Avoid Multiple Enquiries: Multiple loan enquiries within a short span recorded in the Credit Report portrays you as credit-hungry, which gives a negative impression. 

✅What if my CIBIL score is 300?

A CIBIL Score of 300 is considered Very Poor, and you will have no access to credit facilities as the lenders are wary of defaulting borrowers. You will be categorized as a very high-risk borrower, and the loan application will be rejected right away.

✅What is the right CIBIL score?

The ideal CIBIL Score is 750 and above. The closer you are to the 900 mark, the better will be your reputation with regard to credit history,

✅Can I buy a house with a 716 credit score?

You can approach a bank for a home loan with a credit score of 716 as there are banks like SBI that accept proposals for a home loan from candidates with a credit score between 650 and 750.

✅How much home loan can I get on 45000 salary HDFC?

The quantum of the home loans depends on various factors like Credit Score, income, employment, the value of the property, debt to income ratio etc. You can approach the bank with the required details to get an idea of the loan quantum for a salary of Rs. 45000.