As you must be knowing already, the CIBIL score will always impact your home loan. The CIBIL score for home loan should be good otherwise you will have problems when you apply for home loan. When it comes to the home loan eligibility calculator, you will definitely be able to get a fair idea of the amount that you can get but if your CIBIL score is not good, you will either have to pay considerably higher home loan interest rates or the loan will be rejected altogether.
Your home loan eligibility depends hugely on the CIBIL score which is a record of your entire credit history and track record of repaying loans, credit card bills and similar transactions. CIBIL maintains and sources details about the payments made by individuals and organizations with regard to credit cards and loans. These are submitted to CIBIL by financial institutions every month. A credit score and CIR (Credit Information Report) are created based on these reports. This score enables the evaluation of loan applications and influences their approval.
To get your home loan smoothly, you need to have a CIBIL score for home loan above 750. The credit score and report are the first things checked by the lender. In case the score is low, the application may be rejected outright. Your creditworthiness is determined by your CIBIL score and a good score may help you negotiate for better terms and conditions as well. CIBIL scores usually range between 300 and 900. Your CIBIL score is impacted by your payment history. Defaults on loan EMIs or late payments of dues negatively impact the score.
The credit utilization limit is also important for determining the CIBIL score. Increases in your credit card balance may impact your score in a negative manner. Having a higher percentage of loans which are unsecured, i.e. credit cards or personal loans as compared to secured loans, i.e. home loans or auto loans could also impact the score negatively. Also, if you have been sanctioned multiple credit cards or loans recently, the score will be affected since your debt burden will have increased considerably and you will be perceived as being hungry to get credit.
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