CIBIL score is an essential parameter that holds significant influence in determining the financial credibility of an individual. Financial institutions evaluate the creditworthiness of an individual through the CIBIL score. The lending companies find out about repayment patterns and the ability of an individual to repay a loan through this score. It is based on credit records, repayment behaviour, and the current debt-to-equity ratio of an individual.
CIBIL score plays a major role in affecting the chances of an individual getting a loan against a property. A high CIBIL score increases the possibility of an individual getting a loan against property, whereas a low score hinders it. Applying for a loan against property with a low CIBIL score may result in a loan at a higher interest rate or, in some cases, a rejection of the loan application.
The CIBIL bureau considers various factors like credit utilisation ratio, repayment pattern, credit diversification and hard inquiry number to make a credit information report, which then gives the CIBIL score. The CIBIL score ranges from 300 to 900. Individuals with a high CIBIL score enjoy the following benefits while taking a loan:
Higher loan eligibility
Low-interest Rates
Negotiable loan sanctions
Flexible repayment tenures
The CIBIL score is classified among three ranges, i.e., bad, moderate and ideal. To avail of these benefits, the CIBIL score of an individual must fall under either the moderate or ideal category. The table below shares information about these categories and the probability of each category has in getting a loan:
CIBIL Score Range |
Credit Grade |
Probability |
330-550 |
Bad |
Low probability (less than 25% chances) |
550-750 |
Moderate |
Average probability (30% to 70% chances) |
750-900 |
Ideal |
Full probability (100% chances) |
**Note - Each financial institution considers the CIBIL score differently. If an applicant has a low CIBIL score, they may still get a loan against property but not with favourable interest rates and repayment tenure.
There are many things that one must keep in mind while applying for a loan against property. These include -
CIR - The credit information report plays a major role in the loan against property application review procedure. Make sure you have the report ready with you.
CIBIL Score - The CIBIL score is the most important parameter considered by the lender while reviewing the application for a loan against property. Check your CIBIL score before you start the application procedure.
Applications Frequency - When a person fills in an application for a loan, the reviewer files an inquiry for the credit score of the person. This inquiry harms the credit score of the person. Therefore, make sure you fill in a minimum number of applications.
You can easily check your CIBIL score online by following the below-mentioned steps -
Go to the official portal of CIBIL.
Create an account by filling in the required information. Once your account is created, you can access your CRI.
Verify your account by entering the required details. An OTP will be sent to your registered mobile number, enter that.
Once the verification is completed, you will be redirected to the CIBIL dashboard.
Tap on the ‘See your CIBIL score’ option.
Your current CIBIL score will be displayed on your screen.
If you wish to apply for a loan against property, the ideal CIBIL score is 750 points or above. Any score lower than this will reduce your chances of getting your loan against property approved.
To get a loan against a property with a bad CIBIL score, you can either opt for the available loan plans or work on increasing the CIBIL score. If the interest rates and repayment flexibility are not in your favour, you should use the tips and tricks mentioned in the article and increase your CIBIL score first. Once it is done, apply for a loan against the property.
Yes, the CIBIL score has a direct effect on the eligibility of a loan against property. All the major financial lenders in the market prefer to give loans to people with CIBIL scores of 750 or higher. Such individuals avail of loans with low-interest rates along with flexible repayment options. Some lenders in the market might give out loans against properties without a CIBIL score of 750, but the individual won’t get the benefit of low-interest rates and flexible repayment.
If the CIBIL score is extremely low, one of the best ways to avail of a loan against property is to get a guarantor. The guarantor will have to guarantee the lender that you will stick to the fixed terms and conditions of the loan and pay all the EMIs on time. In case you fail to do so, the guarantor will be answerable.
Yes, a CIBIL defaulter can get a loan against property, but the individual won’t be able to get a loan plan with favourable terms and conditions. In such a situation, the interest rate will be high, the repayment mechanism will be wholly decided by the lender and the tenure also will be fixed by the lender itself.