A strong CIBIL score to attain a good home loan deal normally begins from 750 onwards. However, the nearer you are to 900, the more reliable you are for credit institutions for home loans. With a strong score along with other crucial criteria determined by the bank, you can avail yourself of funding of up to 85 percent of the overall property cost.

What CIBIL score must you have for a home loan?

CIBIL score plays an important role in processing your application for a home loan. In fact, it is the major parameter based on which bank decides whether to process your home loan application. When you place the home loan application, the lender initially checks your credit history and score. Suppose you applied for an SBI home loan. To ensure your eligibility for an SBI home loan, a CIBIL score check is more important than anything else.


 your CIBIL score is low or you hold a poor credit history, the lender may most likely turn down your application. However, if you hold a strong credit score, your application for a home loan will be processed faster. While there is zero universal credit score, every bank comes with a minimum CIBIL score requirement which serves as a cut or indicator to reject or accept the application. In general, a score of 750 and above is often looked upon as a good score, while scores between 350 – 750 are considered average, and a score less than 350 is unacceptable. Thus, for SBI, a CIBIL score check is important. And the same is true for any other lender.

What is meant by credit score or CIBIL score?

A credit score is a 3-digit numerical representation of your whole credit history. The credit score value normally ranges anywhere between 300 and 900. Your score is formed based on your past repayment history. This even involves your unsecured and/or secured loans and other debts that you might have or have.

You can fetch your credit report from the CIBIL at a nominal charge and know about your score before placing an application for a home loan. Credit reports often include the listed info –

∙       Credit record availed by you

∙       Your past repayment record concerning your credit card and loans

∙       Late payment or default on your past credit will be held by you

∙       Credit cards and loans that you currently hold

∙       Current info about credit card and loan applications placed by you

Ensure to study your credit report carefully. And in the case of any error or discrepancy, ensure to get it corrected as soon as possible. A corrected report automatically enhances your credit score.

How is your CIBIL score used for approving your home loan?

Before sanctioning your application for a home loan, the lender obtains your repayment history and credit score from CIBIL. CIBIL collects as well as organizes all the data and even provides this to all the financial institutions and banks when required. CIBIL gets hold of such data and info with the assistance of credit institutions and banks, which are CIBIL’s members by default. Info is provided to the CIBIL on a monthly basis depending on which CIBIL forms the CIR (credit information report) and scores for every commercial company. Banks refer to an applicant’s history to decide whether a home loan must be approved. Credit score assists lenders in disbursing loans efficiently by easily avoiding risky customers, thus lowering defaults.

NPAs (non-performing assets) are included in every lender’s portfolio. With the home loan accounting for a huge part of the bank’s loan, the applicant’s credibility becomes the crucial parameter in maintaining the quality assets.

Here are the important steps you must consider when applying for a home loan

Listed here are some of the crucial steps to make the most out of credit score when availing home loan –

∙       Check out your credit score before applying

Ensure to know your score before placing an application for a home loan to ensure that your personal details and credit history are in the right order to avoid loan rejection from the lender. You can even buy your report on your own online from the CIBIL website by paying a reasonable amount.

∙       Stop applying for loans repeatedly

In case your score is lower, and your loan application is disapproved by a specific bank, stop repeatedly applying through other lenders. Doing so will further lower your credit score as distinct bank enquiries are looked upon as bad enquiry, which negatively impacts your score.

∙       Limit your unsecured credit options

Try and close or restrict your unsecured credit options like credit cards and personal loans. This is because this aspect is an indicator of an outstanding balance. Lenders often factor your DTI or debt to income ratio before disbursing the home loan. A higher debt-to-income ratio shows you are burdened and cannot bear more EMI payments.

How can you check your score online?

You can simply access your score by approaching CIBIL’s official site. On the site, you will see an application form which you must fill with details like name, address, date of birth, income, phone number, address proof, identity proof and loan that you availed. After you fill-up the details and submit your form, you will be required to make the payment through your debit card, credit card or net banking. Once you make the payment, you are directed to the page where you must answer 3 to 5 questions linked with credit cards and loans to proceed ahead. Once verified and successfully authenticated, CIBIL sends your score via mail in 24 hours. Having knowledge about your score before placing the application for a home loan will surely lower your rejection risk. In case you find that your credit score is extremely low, you must take the required steps to ameliorate it.

Here’s how you can improve your score –

∙       Consider making all your credit card and loan payments timely.

∙       Do not use your whole credit card limit. Ensure to keep a constant check on your CUR (credit utilization ratio) to keep your balances low and maintain a strong score.

∙       Monitor your single and joint accounts regularly to ensure no payments are missed by the due date.


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