How to get a home loan with an average CIBIL score? Here are 5 ways
Yes, it’s possible to get a home loan with an average CIBIL score, but it might come with certain conditions and higher interest rates. Banks consider a number of factors beyond just the credit score when assessing a loan application, such as stability of income, employment history, current loans, and the ability of applicant to make a down payment.
If your CIBIL score is average, you may still qualify for a home loan, but you might face challenges in getting favourable terms.
It’s vital to ask around different banks and find the one that is willing to work with your credit profile.
Besides, improving your credit score over time can help you qualify for better loan terms in the future.
Ask around: Different banks have different criteria for approving loans. Some lenders may be more lenient with credit scores than their rivals. So, you should ask around and compare loan offers from multiple lenders to find one that suits your needs.
Higher down payment: Giving a higher down payment can bring down the risk for the lender, making them more willing to approve your loan despite your average credit score. A larger down payment also reduces the loan amount, which can make the lender more comfortable with your ability to repay.
Joint applicant: If you have a family member with a good credit score, you could consider applying for the loan together or having them co-sign the loan. Their stronger credit profile can help offset the impact of your average credit score.
Provide additional documentation: Bank, at times, may consider additional documentation beyond just the credit score when evaluating your application.
This could include proof of stable income, employment history, assets, and any other factors that demonstrate your
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