A home loan is given on the basis of your income, age, property value and authorization of both builder and location, and credit score. Since home loans are secured loans, credit score does not have much importance in this case, unlike a personal loan. So, even if you have no credit history or low credit score, you can get a home loan. But the question is, would you get a home loan if you are a defaulter? You may get it in conditions such as:
Conditions under which CIBIL defaulters can get a home loan
The conditions based on which CIBIL defaulters get a home loan are as follows:
If you are a CIBIL defaulter but your current salary is good, lenders might approve your home loan.
Someone with higher income but no professional stability might not be accepted by the lenders. So, make sure you maintain professional stability as well.
High property value
In case of a home loan, property is the collateral on the basis of which lenders approve the loan amount. The higher property value means eligibility to get higher loan amount and it also means that the relevance of your CIBIL score is less in this case.
Good credit score of the co-applicant
You know that you can have a co-applicant with your home loan application and their credit score might help you in getting approval. Having a co-applicant with good CIBIL score would make it easier for the lender to trust repayment and approve the loan.
Valid documents for delayed payments
If the customer can justify the delay’s in the payment and bouncing providing the documents, some lenders may consider your applications.
Other than the above mentioned conditions, it also depends where you are applying. Most of the big lenders do not prefer giving a secured loan to someone who has a poor credit history. So, it is better to maintain a good credit score or else make sure all other factors are perfect.