How To Get A Home Loan For A Low CIBIL Score?

Blog Published Date

31 July, 2023

Blog Author

4 mins read

How To Get A Home Loan For A Low CIBIL Score?

While planning to purchase a dream house, the first step to achieving it is applying for a home loan. And that is not easy! Applying for a home loan and getting it sanctioned can be tedious, considering the requirements and the formalities involved. One of the most critical requirements for home loan approval is the CIBIL score. It is a measure of the loan applicant's creditworthiness. Therefore, maintaining a good score becomes highly significant. But what is a good CIBIL score for a home loan, and how to get home-buying loans for bad credit? Read on to know more.

What Is a Good CIBIL Score?

CIBIL score is a 3-digit numeric value, an indicator of creditworthiness, provided based on an individual's credit history. It is calculated by the Credit Information Bureau India Limited (CIBIL). and the score ranges from 300 to 900. Generally, a score higher than 750 is considered 'Very Good', higher than 650 is considered 'Good', and less than 650 is considered 'Low'. And the minimum CIBIL score for a home loan is 650. However, the CIBIL score requirement for a home loan approval can vary between institutions .

How To Get a Home Loan If the CIBIL Score Is Very Low?

  • Approach an NBFC

    A Non-Banking Financial Company (NBFC) is a financial institution that engages in a lending process similar to a bank and does not perform operations such as fund transfers, accepting deposits, etc. Although NBFCs have a set procedure for the loan application process, it is not stringent compared to a banking institution. Therefore, applicants can approach an NBFC to increase the chances of approval of a home loan for a low CIBIL score.

  • Include a Co-applicant

    An individual having a low CIBIL score can apply for a home loan by including a co-applicant. They need to ensure that the co-applicant has a high CIBIL score. The applicants can choose their parents, spouse, siblings, or other applicable individuals to be the co-applicant. However, the co-applicant should provide the required documents and follow the complete loan procedure.

  • Approach the current lender and increase investments

    Applicants may approach different institutions for a home loan. However, if the credit score is low, they can approach the loan with their current lender, explaining the financial situation and the future course of action. They can expand their financial investments, such as using a Demat account provided by the lender, purchasing insurance, etc., to increase their chances of being efficient in payments and investments to increase their credit score.

  • Propose a higher down payment

    Applicants can utilise their savings or investment funds to pay a higher down payment for the home loan. As a result, the lender can trust the repayment ability and increase the chances of approval for a home loan without a CIBIL score. Moreover, the applicants can mention the source for the down payment, such as the savings, to make the financial plan clear and straightforward.

  • Managing credit card payments efficiently

    Generally, there is an understanding among credit card users that paying the minimum amount due every month will suffice for the requirement. Although it is not a default, it can increase the applicable interests and the outstanding amount, making future payments extremely difficult. Furthermore, if the outstanding amount is not being paid for a longer duration, it can reduce the credit score to a great extent. And a low CIBIL score credit card can lead to rejections. Therefore, home loan applicants can clear off their credit card bills and ensure to follow this discipline timely for a few months to increase their credit score.

  • Increase the CIBIL Score

    Determine the Credit Report, which records all the credit facilities availed and their repayment history to analyse the reasons for a low CIBIL score and take and take the right actions. Some of the advisable methods are:

    • Raise a credit repair request to sort out reasons behind delayed and non-payments related to technical errors while debiting the EMI, EMI holidays not being considered, etc., to revise the CIBIL score.
    • Clear off debts related to any previously availed loans, such as personal loans, not just closer or lesser than the outstanding amount in any way but entirely.


Having a good CIBIL score is critical to ensuring the approval of a home loan application. However, if it is lower than expected, the loan applicants can approach an NBFC, include a co-applicant, propose a higher down payment, and clear off debts to apply for a home loan and increase the chances of approval. Financial balance is essential for easy approval of home loans. And no one wants to wait longer to enter their abode. A home is where the heart is, and a perfect choice for city dwellers is Piramal Revanta — a perfect balance of nature and luxury at its best!

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.