Finding a home of your dreams has become a necessity in this evolving real estate landscape. With a plethora of offerings from various banks and financial institutions, it has become very easy to apply for a home loan. Banks offer you a range of exciting features, thus making your dreams of owning a home possible. But getting a home loan approved for you requires certain criteria to be fulfilled, chiefly a good CIBIL (Credit Information Bureau (India) Limited) score.
CIBIL Score is one of the integral factors when it comes to getting your home loan. Also known as the TransUnion CIBIL score, it is a 3-digit number ranging from 300 to 900. A credit score reflects an individual’s dealings with loans or credit cards in the past. The higher your CIBIL score, the better your chances of getting a loan or credit card application approved by the financial institutions. The credit bureau on the basis of the credit information of an individual, generates the credit report and credit score. The lenders on the basis of the credit report provided by CIBIL, analyse whether the applicant is capable of repaying one’s loan on time or not. This way, CIBIL performs an essential role in India's financial system.
Every bank, when it comes to application of home loans, reviews the creditworthiness. This is done so as to ascertain whether the borrower will be likely to repay the loan along with the accrued interest. Preferably, if the CIBIL score is above 750, there is a substantial increase in chances of getting your home loan. CIBIL score is calculated on the bases of credit history. A high credit score will assist you get a loan after being evaluated for repayment capabilities.
The benefits of a good CIBIL score are:
Knowing your credit score is the first and most important step to becoming financially disciplined. The more creditworthy you are, the less is the chance of a negative score affecting your approval for a loan. Here are some of the aspects to improve them:
A good credit score or a credit history can make your lifelong dream of a home come true and can offer you possibly the best home loan personalized to suit your budget.
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