The CIBIL score is a three-digit numerical summary of a borrower's repayment history and creditworthiness. It plays significant a role in getting a home loan as lenders scrutinise the score to gauge the borrower’s repayment potential and eligibility. Moreover, lenders know whether borrowers have any ongoing loans through a credit score.
Primary function of CIBIL score in a home loan
The ideal CIBIL score for a home loan is 750 and above, allowing borrowers to avail of high-value loan amounts at an affordable interest rate. Hence, borrowers should strive to maintain a decent credit score. On the other hand, lenders either cancel the loan application or offer higher interest rates to borrowers with substandard CIBIL scores.
Know how to check the CIBIL score
Here are the steps that will borrowers view their credit scores online:
Step 1: Visit the official website of CIBIL website and click on ‘Get your CIBIL score’.
Step 2: Select 'Click here to know annual CIBIL score.
Step 3: Fill in the form that will appear with identifying details. Attach ID proof.
Step 4: Enter PIN, date of birth and contact number, then click on 'Accept and continue'.
Step 5: Enter the OTP sent to the registered number and click 'Continue' to check credit score.
Checking and monitoring the CIBIL score regularly, limiting the credit usage, paying out EMI on time etc., improves borrowers' CIBIL score, helping them to avail best home loan option.
Moreover, a healthy credit gives borrowers an upper to negotiate with lenders to fetch better loan terms, making the home loan affordable.
To sum up, maintaining a decent CIBIL score for a home loan is a vital criterion that plays a major role in the home loan approval process.
Read Also: When to Apply for a Home Loan
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