Know all about the importance and impact of a CIBIL score for your Loan Against Property
Instantly Check Your CIBIL Score and Receive a Free Credit Report Online
At present, there is no set CIBIL score requirement for a loan against property. However, a high score can increase an individual's chances of securing this loan. Meanwhile, a low score can lead to the loan application being rejected or a higher interest rate being charged on the loan. Hence, it is important to understand how your CIBIL score can affect your loan against property approval.
Your CIBIL score ranges between 300 and 900. TransUnion CIBIL considers various factors when compiling your score. These include your credit utilisation ratio, repayment pattern, credit diversification and number of hard inquiries. Individuals with a high CIBIL score enjoy the following benefits while applying for a loan against property:
Higher loan eligibility
Individuals with a high CIBIL score have a history of responsible repayment, which makes lenders feel more confident in providing a larger loan amount
Low-interest rates
A high score signals to lenders that you are a low-risk borrower and likely to make timely repayments, so they reward you with a lower interest rate
Negotiable loan sanctions
A high score enables you to negotiate for more favourable loan terms based on your strong credit profile, such as higher loan amounts or faster disbursals
Flexible repayment tenures
Your impeccable credit record makes lenders more willing to offer longer repayment periods, lower EMIs and more relaxed timelines
Other additional benefits
A good CIBIL score opens up options for additional perks such as pre-approved offers, faster processing or waivers on documentation or admin fee requirements
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FAQs
How to check the CIBIL score for a loan against property?
You can easily check your CIBIL score online by following the below-mentioned steps:
Click on ‘Check CIBIL score’
Fill in the requested personal details
Click on “Get OTP”
Enter the OTP received
Your updated CIBIL score will be displayed
What is a good CIBIL score range required for a loan against property?
Currently, you don’t require any specific CIBIL score range for a loan against property. Ideally, a score of 700 will improve your chances of getting loan approval and help secure better terms.
How to get a loan against property with a low CIBIL score?
To get a loan against a property with a poor CIBIL score, you can either opt for the available loan options or understand how to improve your CIBIL score.
Does CIBIL score affect LAP eligibility?
While your CIBIL score doesn't directly determine your eligibility for a loan against property, a score of 700 or higher is favoured by major lenders. Higher scores can help secure loans at lower interest rates and flexible repayment terms. Some lenders may offer loans with lower scores but benefits like flexible loan terms might not be available.
How to avail of a loan against property without a CIBIL score?
For individuals with a very low CIBIL score, securing a loan against property becomes viable with a guarantor. A guarantor with a strong credit history can enhance your approval chances by assuring the lender of adhering to loan terms and timely EMI payments. However, it is advisable to build a positive credit history for future financial transactions, as it can improve overall loan eligibility and obtain more favourable terms.
Can a CIBIL defaulter get a loan against property?
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.
