How to get a mortgage with a low CIBIL score?


fBuying a home is a pivotal moment in life, a decision that therefore requires careful thought. However, with real estate rates soaring, you may need to rely on outside financial help to buy a home for you and your family. If you want affordable home loan interest rates, you should ideally maintain a good CIBIL score, a three-digit number (between 300 and 900) that describes your creditworthiness. The lender will assess your CIBIL score and approve / reject your mortgage application accordingly. A high credit score means a high loan repayment capacity. If you have a good CIBIL score, approving your home loan is easier. However, if you have a low CIBIL score (less than 750), you may have difficulty getting a home loan.

If you want to make sure you easily get the mortgage with a low CIBIL score, follow these simple suggestions:

  1. Pay off credit debts: In most cases, your credit rating is low due to past due debts. If you pay off your past debts and stay clear about your dues, such as credit card bills, loan IMEs, utility bills, etc., you can improve your CIBIL score and increase your chances of getting a mortgage.
  2. Approach an NBFC: If your credit score is low, it is better to approach a non-bank financial corporation (NBFC) for a loan rather than a traditional bank. NBFCs are comparatively more flexible with credit scores and offer home loans at much lower CIBIL scores than banks. However, you may have to pay slightly higher mortgage interest rates to get a loan with a low CIBIL score. You can use an online home loan IME calculator to find out precisely what interest rates and IMEs you have to pay on your loan from an NBFC.
  3. Benefit from a solidarity mortgage: You can consider adding your spouse as a co-applicant in your mortgage application if you have a low CIBIL score. However, for this to work, your spouse must have a good credit rating.
  4. Show proof of income: With a low CIBIL score, lenders are more likely to approve your home loan if you provide them with substantial proof of income that supports your ability to repay the loan on a timely basis. You can provide payslips, bank statements, additional sources of income, etc. This will assure the lender that you are financially able to repay the contributions.
  5. Go for a secured home loan: if you own private property or valuable assets like gold etc., you can use them as collateral to get a home loan with low CIBIL score. Securing your loan against collateral increases your chances of getting a cheap home loan mortgage interest rates. Most NBFCs accept assets such as real estate, gold, term deposits, etc., as collateral for a home loan.


It is possible to obtain a mortgage with a low CIBIL score. However, pay attention to a few factors like paying your loan deadlines on time, keeping sufficient funds in your account, going for an automatic debit facility, etc. Use a home loan EMI calculator to know exactly how much you owe and make sure you never miss loan IMEs.


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