How much CIBIL Score is Required for a Home Loan?
When you apply for a home loan, the bank usually checks your credit score in order to determine your creditworthiness. The bank contacts CIBIL Transunion to know your credit score which is also known as the CIBIL Score. There is no minimum CIBIL score for home loan but 750 and above is generally considered a good one for home loan approval.
What is a CIBIL Report or Credit Score ?
A Credit Report is provided by existing four credit bureaus — TransUnion CIBIL (Credit Information Bureau of India Limited), Experian, Equifax and CRIF High Mark. The most popular among these four bureaus is CIBIL. A CIBIL score is a 3 digit number that ranges between 300 and 900. The closer the score is to 900, the better it is.
The bank checks your credit score to determine your creditworthiness whenever you apply for a home loan. If you maintain a minimum CIBIL Score of 750 and above, it is generally considered good for the loan approval. Avoid applying for multiple loans simultaneously, as every application sent to lenders may affect your credit score. Your credit report provides all the necessary information for financial institutions to analyze and offer home loans. You can download your free CIBIL credit report from Paisabazaar.com and can also get free monthly updates that will help you keep a tab on your credit score over the time.
Your current income and employment history are also important to banks. Banks just want to know you have steady employment and the monthly cash flow necessary to make your mortgage payments.