5 Tips to Get a Home Loan even with Poor Cibil Score

January 05, 2021 jack 0 Comments

In the world of secured and unsecured loans, the importance of the cibil score just can’t be ruled out.

No matter if you are applying for a home loan, personal loan or any other, credit score has its own significance.

In fact, it is one of the vital home loan eligibility criteria that lenders check while processing your loan application.


If your credit score is good, it means that you are a safe bet when it comes to making timely repayments. And when you are able to make timely repayments, then it is seen as a sign of creditworthiness.

But what if your cibil score is poor and you still want to avail the loan?

Is it even possible? Yes, that may be a possibility if you follow a few tips.

Read on and know more now!

  1. Show records of making timely repayments

Your credit score may have taken a hit if you had defaulted on making timely repayments earlier. Making timely repayments towards existing bills is one of the key home loan criteria for eligibility. But if you have been paying the loan EMIs + credit card outstanding on time, then you can show its record to your prospective lender. It may denote that now you are paying the bills on time. In turn, lenders may approve your home loan request.

  1. Prove that you can repay the loan with income evidence

Many lenders also consider factors like your current Salary and income sources other than your credit score while determining the home loan eligibility. If your cibil score is lower, then you can submit bank statements showing that your income has increased. It denotes that you are financially capable of repaying the debt on time. And it will help you get the approval quickly.

  1. Try applying for the home loan via the NBFC

If your cibil score is poor, and if you want to apply for a home loan, then you should avoid doing that with a conventional bank. Banks have stringent home loan eligibility criteria that they adhere to the core like the Bible. And if your credit score is not strong enough, then it may reject your application straightaway. In this case, the best thing to do is applying for housing finance with the non-banking finance companies (NBFCs). It is because their lending terms are relaxed for customers with poor credit scores. The only thing that you need to note here is that NBFCs may approve your request at a higher rate. And that would mean paying a higher EMI over the tenure affecting your monthly outlays.

  1. Apply for a lower amount of loan

Having a poor cibil score and applying for a bigger loan amount is a recipe for disaster. Lenders may consider you as a risky customer. Here, you can go for a lower loan amount so that you have no issues in repaying it. This way, you can also improve your credit score by making time-to-time EMI payments. Later, you can apply for a bigger amount after winning the trust of your lender. You can also check out the home loan eligibility calculator and get an idea of an amount that may be sanctioned. 

  1. Get a guarantor or apply with a co-applicant

So what if you have a lower cibil score? You can still get the loan approval faster if you apply with a guarantor or with a co-applicant. The only condition is that the credit score of the guarantor or the co-applicant needs to be higher. Hence, you should check that beforehand and then only apply.

If you are able to follow one of the discussed tips, then you may find it comfortable to apply for a home loan if your cibil score is bad.

Based on your profile, you can implement one of the tips and see your loan application getting approved easily.  

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