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!
- 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.
- 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.
- 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.
- 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.
- 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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