cibil score for home loan

What is the Minimum CIBIL Score for Home Loan?

Finance

A home loan like any other loan is given on the basis of many factors such as age, income and credit history. Although, property value and location play a vital role in deciding whether or not the housing loan will be approved.

But it is also important to note that a minimum CIBIL score is required for loan and same is the case with home loans. In this article, we will share that a home loan can only be availed if a person has all the documents as per the requirement, matching eligibility criteria and a credit history even if the score is zero.

What is the minimum CIBIL score for a home loan?

Almost all lenders demand a minimum CIBIL score of 650 for a home loan. Even though those who have zero CIBIL score can avail the benefit but the rates given to these applicants might be higher.

How can you check CIBIL score?

You can follow the below steps in order to check your score online:

  1. Go to check CIBIL score check website
  2. Provide your full name as mentioned on the PAN card
  3. Enter your Date of Birth
  4. Choose the gender you belong to
  5. Mention your PAN card number
  6. Enter your contact address
  7. Provide the email ID fn which you want to get the credit report
  8. Enter your mobile number
  9. Submit the form

How can you get CIBIL report?

You can simply login to the portal using your email ID and password. You will get the option to view as well as download the CIBIL report. You can keep it for reference purposes.

How can you improve your CIBIL score?

Here are some of the best options in front of you to improve or generate a good CIBIL or credit score.

  • You can apply for a loan a credit card
  • Avoid unnecessary usage of credit cards.
  • Try to maintain more than 30% of your credit card limit.
  • Increase your limit in case you are sure of using it in a disciplined manner.
  • If possible, do not go for prepayment of the loans as it affects the credit score.
  • Pay your loan EMIs or the credit card bill on time.

Once you check your credit score and find yourself eligible, you can check whether you match the eligibility criteria for a home loan or not. Also, you must have the required documents because a home loan can only be approved if the property documents are approved by the lenders. So, look at the eligibility criteria below:

Eligibility Criteria for a home loan

For Salaried:

  • The age of the applicant should be between 18-70 years
  • The net monthly income (NMI) should be above ₹10,000
  • The maximum tenure you can get is 30 years
  • The minimum work experience required is 2 years

For Self-employed:

  • The age of the applicant should be between 18-70 years
  • The net annual income should be above ₹2 lakhs
  • The minimum work experience should be 3 years

Documents Required for a home loan

The list of documents required for the loan application are as follows:

For Salaried:

  • Duly filled loan application
  • 3 recent passport size photographs
  • Identity proof (Voter ID card/Passport/ Driving license/IT PAN Card)
  • Residential proof
  • Proof of business address for non-salaried individuals
  • Bank statement/Pass Book of last three month
  • Signature identification from present bankers
  • Personal Assets and liabilities statements
  • Original salary certificate from employer
  • TDS certificate on Form 16 of IT return for last two financial years

For Self-employed:

  • Duly filled loan application
  • 3 recent passport size photographs
  • Identity proof (Voter ID card/Passport/ Driving license/IT PAN Card)
  • Residential proof
  • Proof of business address for non-salaried individuals
  • Bank statement/Pass Book of last three month
  • Signature identification from present bankers
  • Personal Assets and liabilities statements
  • Acknowledged copies of three years IT return/Assessment orders
  • Photocopies of challans evidencing payment of Advance Income Tax

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