CIBIL Score: This much CIBIL score is necessary to get a home loan, know this important thing before going to the bank..
A credit score reflects your financial reliability. It tells how honestly you have paid your previous loans and credit card bills. Banks decide whether to give you a loan or not and how much amount to give based on this score. 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 your 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 want a home loan of Rs 1 crore.
Why is credit score 'king'?
A credit score shows your financial reliability, which is a reflection of your responsibility to pay previous loans and credit card bills. Banks use it to decide whether to lend you a loan and how much to lend. A higher score indicates less risk, which increases the chances of loan approval and gives you better interest rates.
What is the 'ideal' credit score for a ₹1 crore home loan?
For a ₹1 crore home loan, banks usually require a credit score of at least 750 or above, which is considered 'excellent'. Loans are easily available on this score. Some banks or housing finance companies may also offer loans on a score of 700, but in such a case the interest rates may be higher.
What to do if the 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 EMIs 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.
By the way, only a good credit score is not enough for a home loan. The bank pays attention to other things for a big loan like ₹ 1 crore. What is your job, and what is your monthly income, will you be able to repay the loan from the total monthly income or not, what is your age, because this will decide 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 looks at some such things.
How to make the dream of a loan of ₹ 1 crore come true?
First of all, check your current credit score. Before taking a home loan, assess your income and expenses correctly 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.
Getting a loan is not difficult-
Let us tell you that it is not difficult to take a home loan of ₹ 1 crore, 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.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
