5 Ways in which a Mortgage Loan impacts your CIBIL score

A mortgage loan or loan against property is a secured loan that you can obtain by pledging any residential or commercial space you own as security. Today, around 23% of all corporate loans are loans taken against properties. Typically, you obtain a percentage of the market value of your property as a loan. Since these loan amounts can run very high, mortgages have huge bearings on your CIBIL score.

They can bolster your credit score or bring it to an all-time low. Considering that your CIBIL score is the defining factor that helps you borrow credit from lenders, you should make every effort to see that it remains healthy. To do this, understand the 5 ways that a mortgage loan impacts your CIBIL score.

A High-Value Loan Gives You A Chance To Boost Your CIBIL Score

Since this loan is backed by a valuable security, a mortgage loan amount can often run into crores. For example, you get financing up to Rs. 10.50 crore* on a Bajaj Finserv Loan Against Property. Interestingly, the amount of credit you are exposed to contributes to around 25% of your CIBIL score. So, taking a large loan and handling it well is a sure-shot way to boost your score.

Looking for more flexibility? Bajaj Finance offers a Flexi Loan option, allowing you to pay interest only on the amount you use. This helps you keep your finances manageable and your credit score healthy! Check your loan eligibility now and manage your expenses without financial worries!

Paying Your Debt On Time Makes You Creditworthy

Once you take the loan, you may be wondering minimum CIBIL score required for loan against property. All you have to do is make timely repayments. Your payment history forms 30% of your CIBIL score. Thus, not defaulting on EMIs greatly improves your creditworthiness.

You Can Use A Mortgage Loan To Reduce Your Credit Utilisation Ratio

Your credit utilisation ratio is calculated upon the revolving credit you have basis your income. An example of revolving credit is a credit card, wherein your limit gets renewed when your debt is paid off. CIBIL devotes around 20% of your score to factors that include your credit utilisation ratio. Using a mortgage loan to consolidate debt and free up your credit utilisation is a smart way to improve your credit score quickly.

A Secured Loan Adds Variety To Your Credit History

When computing your credit score, CIBIL not only considers the loan amounts but also the types of loans you have in your name. That is, CIBIL factors in a mix of secured and unsecured loans. A mortgage loan such as loan against property can be a great addition to balance the unsecured debts like a personal loan or credit cards you may already have. This variety will help you improve your credit score and strengthen your financial profile. Your credit type and repayment tenor form around 25% of your CIBIL score. Check your loan against property eligibility in seconds and find out how much you can borrow.

A Long Tenor Has A Big Impact On Your Credit Score

Choosing a long tenor not only brings down your EMIs, but also gives you a chance to repay your loan over a long time-frame. This, in turn, will help you firmly establish yourself as a reliable borrower and thereby bolster your CIBIL score. Partnering with Bajaj Finserv lets you repay your Loan Against Property via a tenor of up to 15 years*. Paying EMIs for this length of time will not only put your repayment history in good light, but also add valuable points to the 25% reserved for credit type and duration.

One way to make your Loan Against Property repayment more accessible is by availing of Bajaj Finserv’s Flexi Loan feature. It allows you to withdraw from your sanction as per your needs. Moreover, you pay interest only on the amount you utilise from your approved sanction instead of the whole amount. Additionally, you have the option of paying interest-only EMIs in the beginning of the tenor. With your EMI payments reduced, you stand a chance to improve your credit score, which you can view via free CIBIL check once a year.

Finally, when it comes to your credit score, multiple loan applications can harm your numbers. It shows that you are credit-hungry and causes your score to drop by 3 to 4 points every time a lender does a hard inquiry on your account. If this happens frequently, your score may drop significantly, and you may end up settling for a loan with higher interest rates. To avoid this, check your pre-approved loan offer from Bajaj Finance first. You can get instant approval with a customised loan offer, so you don’t have to worry about multiple inquiries. Check your offer in seconds! This way, you can keep your credit score intact while securing a great deal on your mortgage.

Unlocking financial potential with loan against property

Now that you well-versed with CIBIL Score for mortgage loan, let us explore funding options to meet your financial needs. Whether you own a residential or a commercial property, Bajaj Finserv Loan Against Property allows you to leverage your real estate for various financial needs, including business expansion, wedding, education financing, or medical emergencies. Enjoy competitive interest rates, flexible repayment plans, quick loan approval, and easy eligibility criteria with Bajaj Finance.

Benefits of Bajaj Finserv Loan Against Property

1. Competitive interest rates: Bajaj Finance offers attractive rates, making borrowing affordable.
2. Fast approval: Experience swift loan approval and disbursal to access funds during urgent situations.
3. Easy eligibility: The qualification process is simple, making loan access hassle-free.

Did you know you may be eligible for our loan against property offers with low-interest rates? Check your offer in just 2 clicks!