CIBIL Score: This much CIBIL score is necessary to get a home loan

News, Digital Desk-  Credit score reflects your financial credibility. It tells how honestly you have paid your previous loan and credit card bills. Banks decide on the basis of this score whether to give you a loan or not and how much amount to give. A good score shows less risk, which increases the chances of getting a loan and getting a loan at better interest rates.

CIBIL Score for Home-

Buying one's own house is a big dream in everyone's life. But almost everyone has to take a loan to buy a house. But if you are buying a big house and there is a demand for a big home loan like ₹ 1 crore, then such a bank will keep a close eye not only on your income but also on your credit score (CIBIL Score). So we will understand what should be the credit score if you need a home loan of Rs 1 crore.

Why is credit score 'king'?

A credit score shows your financial credibility, a reflection of your responsibility to pay past loans and credit card bills. Banks use it to decide whether to lend you money and the amount. A higher score indicates lower risk, increasing the chances of loan approval and getting you better interest rates.

What is the 'ideal' credit score for a ₹1 crore home loan?

For a home loan of ₹1 crore, banks usually require a credit score of at least 750 or more, which is considered 'excellent'. Loans are easily available on this score. Some banks or housing finance companies may offer loans even on a score of 700, but in such a case the interest rates may be higher.

What to do if credit score is less than 750?

Now the question also arises that if your score is less than 750, then there is no need to be disappointed, it can be improved in time. Pay the EMI of all your existing loans and credit card bills on time. 

Always do not use more than 30% of your credit card limit. Old credit accounts show a long and good credit history. You can improve your score by avoiding taking multiple loans at once.

What else do banks look at besides credit score?

However, a good credit score alone is not enough for a home loan. The bank also takes into consideration other factors for a big loan like ₹1 crore. 

What is your monthly income from your job, whether you will be able to repay the loan from your total monthly income or not, what is your age, because this will determine the time to repay the loan, what is the market value and legal status of the property for which you are taking the loan...the bank definitely takes into consideration some such things.

How to make your dream of getting a loan of ₹1 crore come true?

First of all, check your current credit score. Before buying a home loan, assess your income and expenses properly and understand how you will be able to pay the EMI of a loan of Rs 1 crore. However, for a big loan, you will also have to arrange for a higher down payment (usually 20%). Compare the interest rates and terms of different banks.

It is not difficult to get a loan-

Let us tell you that getting a home loan of ₹ 1 crore is not difficult, especially if your financial position and credit profile are strong. A good credit score plays an important role in this, due to which banks easily give you loans. Keep your financial plan strong and improve your credit score.