If you want to buy a home and plan to get a home loan in India, you should check the CIBIL score. Why? Because it will help you get low interest and instant approval for the home loan. What is a CIBIL score? A CIBIL score is a numerical representation of your creditworthiness. The higher the CIBIL, the more would be the chances for your home loan approval. But do you know what is the minimum CIBIL score for home loan in India? If no, read this article, here you will find the answers to all your questions.
How to Check CIBIL Score?
To check a CIBIL, visit the Transunion CIBIL official website and follow the instructions below:-
- Click the ‘Get Your CIBIL Score’ button
- Select a paid plan
- Fill in your PAN details
- Submit and verify your details
- Create a username and password
- Check your CIBIL
The minimum CIBIL score for home loan is 750.
Factors Affecting Your Minimum CIBIL Score for Home Loan
Having a minimum CIBIL score for home loan isn’t enough, because you need to maintain this score until you find a property and are ready to apply for a home loan. So take a look at the below factors
Previous Loan: Did you repay all your previous loan due? Because if not, this will affect your CIBIL score negatively. So visit your lender and make the loan settlement. This helps you get an improved CIBIL and increase the score.
Credit Card Bills: Put a halt on your spending and reduce your monthly credit card debt, because the lesser the debt the more you save, because when you use your credit card blindly it can make your CIBIL words, because of which you might lose your minimum CIBIL score for home loan.
Credit Utilization Ratio: As per the credit bureaus advise, you need to maintain a credit utilization ratio of 40% minimum. Because when the ratio is higher than 40% it will make you credit greedy that can affect your minimum CIBIL score for home loan directly.
Credit Report: Make sure you check your credit report annually. Because there might be some errors in your report that might affect the minimum CIBIL score for home loan.
Use Paid CIBIL for Minimum CIBIL Score for Home Loan Maintenance
CIBIL provides additional assistance to the customer by offering the paid plans via which one can maintain a healthy CIBIL score without any trouble. And if your CIBIL score is low and you want help to reach the minimum CIBIL score for home loan, this will help. Let’s check out each CIBIL paid offer in detail.
CIBIL Basic Plan: Under this plan you will get an unlimited access to CIBIL score login for a month. And can use tools such as Score Simulator which tell you the consequences of your future actions on your CIBIL Score. Also a CIBIL Credit Monitoring Services, with which you can improve the CIBIL score by tracking its current status. CIBIL will give you suitable home loan offers as well as per your current CIBIL. And all this will come at a cost of INR 550+GST.
CIBIL Standard Plan: If you subscribe for this plan, you will get the following advantages:-
- Unlimited CIBIL Score access for up to 6 months
- Credit Monitoring Service
- CIBIL Score Simulator
- Home loan offers as per your current CIBIL.
- CIBIL Alerts when there are any changes in your CIBIL score
And all this comes at a price of INR 800 + GST.
Premium: A year CIBIL plan for you using which you can Improve the CIBIL if it is poor. And apply for the home loan if it reaches the minimum CIBIL score for home loan criteria. For all this, you need to pay INR 1,200 + GST.
Note: Currently CIBIL provides 20% off on your CIBIL paid plans, and to get this benefit use the promo code: “SAVE20”. Hurry because this offer is valid till 31st August 2020 for new users only.
Things to Remember While Applying for a Home Loan!
Besides the minimum CIBIL score for home loan, you also need to take care of the below pointers:-
- Property value
- Down payment of house
- Construction cost (if you are constructing a house)
- Total cost of property, construction, or renovation
- Home loan interest rate, etc.