- Know whether you will be eligible for a Home Loan or not with a CIBIL Score of 690!
- If found eligible, what will be the interest rate? Check this out and more here!
Usually, a CIBIL score of 700 and above is considered to be a good and ideal one to get a home loan. But since the home loan is a secured loan, your CIBIL score becomes rather less important compared to other unsecured loans such as personal loans or credit card debts. So, you will be eligible for a home loan with a CIBIL score of 690 as it is not far away from the score of 700. But you should make sure that at this point in time, all your past credit card dues and any other loans are paid off. Or you must be making the payments of existing debts on time so that your CIBIL score won’t dip further.
Here, we are saying a bit less important, which does not mean that any CIBIL score would be eligible for the home loan. It’s not like that. Any lender will check your credit score before giving you the required loan amount. And as we told in the beginning that an individual with a score of 700 or above is considered to have good credit repayment behavior, lenders will be more inclined towards giving home loans to such a person.
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Role of CIBIL in Deciding Your Home Loan Eligibility and other Factors
As we told you, a home loan is a kind of secured loan through which you get the required funds for various purposes such as land purchase, home extension, home renovation, home extension, etc, at an affordable interest rate. When you apply for a home loan, the first thing that a lender would check is your CIBIL score. And if it is poor, then the lender may reject your loan application. But with a CIBIL Score of 690, you would be eligible for a home loan. But, as your score falls below 700, interest rate and loan eligibility could get impacted. You can have a look at those things mentioned below.
Rate of Interest
Interest rate is one of the major factors as it directly affects your EMI through which you repay the loan. Lenders usually give a lower interest rate to those people who have a CIBIL score of 700 and above.
As you have got a CIBIL score of 690, you may have to pay your home loan at a higher interest rate compared to people with a good score. So, either you can opt for the loan at a greater rate or you can improve your CIBIL score first and then apply for a home loan at a lower interest rate.
Home Loan Amount
With a CIBIL score of 690, it may be possible that lenders will not sanction you a higher loan amount as your score is not ideal according to them. So in case you have a higher loan amount in your mind, you may have to settle with a lower loan amount. In hindsight, it can prove to be a blessing in disguise provided you can pay more margin. The lower loan will result in reduced EMI and interest outgo over time.
The reason behind this is the lenders try to minimize the credit risk they face while giving the loan to individuals. Giving a higher loan amount to individuals with a low CIBIL score automatically puts them in credit risk. But you don’t need to worry as your score of 690 is not very low and close to being an ideal score, so you might get close to the amount you require. You can also get a higher loan amount on choosing a longer tenure but you need to remember that you will end up paying more interest to the lender. So decide mindfully!
Loan Approval and Processing Time
Individuals with high CIBIL scores usually get the priority when it comes to loan approval and sanction. Lenders usually take 7-10 working days to disburse the home loan amount after you submit your loan application and it completes its due formalities. So this is also one factor that your CIBIL score affects. You can understand this by yourself that lenders give priority to people with good credit repayment behavior as they are highly trustable when it comes to the loan repayment.
So, with a CIBIL score of 690, you will be surely eligible for a loan, but loan approval and sanctioning time may be a bit longer than usual. So, if you are in an urgent need of funds to buy your home, you can improve your score first and then apply for a home loan at a lender that gives you the best deal.
Home Loan Eligibility Calculator
There is also one other amazing tool that can be used to know the home loan amount that you can get. It is an amazing method for those individuals who are confused about the home loan amount that they could get. A lot of people are usually confused about this thing, and with this calculator, they can easily clear it. It’s also a stepping stone to know the right lender according to your requirements.
For using this, you will only need a few details which you can see below.
- Date of Birth (To know your Age)
- Residing City
- Net Monthly Salary
- Tenure (Maximum 30 years)
- Other Monthly Income (If any)
- Existing Monthly Obligations (Credit Card or other Loan EMIs)
As soon as you will feed these details into the calculator and press the ‘Calculate My Eligibility’ button, you will be able to know the maximum loan amount that you can get. In case you’re not satisfied with the results, you can use the Home Loan Eligibility Calculator again with different sets of values.