If you have taken a loan for any of your financial needs such as buying a car or investing in a home, you must have come across the term Credit Score or CIBIL Score. In India, your credit report is generated by credit bureaus like the Credit Information Bureau of India Limited (CIBIL), Experian, and others. Since Home Loans involve a substantially large sum of money and a long repayment period, banks are extremely cautious while approving them. Most banks and other lenders across India offers loans only to those who have a reasonably good score
The reason why lenders consider your CIBIL Score is simple. It summarizes your credit history and rates you based on aspects such as credit utilization, timely repayment etc. Hence, your score is a reliable way for banks to judge your loan repayment ability or creditworthiness. Here are some more ways a good Credit Score can help secure a Home Loan: –
A Good Credit Score is a Great Bargaining Tool
Most banks are on the lookout for reliable borrowers, and a good Credit Score is just what they look for. A high Credit Score is a great bargaining tool that can help you bag a great deal on your Home Loan provided, all the other eligibility parameters for home loans are in your favor. Right from getting a substantial discount on the loan processing fee to waiver on the prepayment fee, your CIBIL can help you have it all.
A Good Credit Score Can Help You Secure a Low-Interest Loan
The higher your score, the better are your chances of securing a low-interest rate on your Home Loan. Besides lower interest rates, you can also enjoy lower monthly instalments as the overall interest rate reduction will reduce your monthly instalments. Hence if you have a good Credit Score, you can negotiate with the bank and reduce the Home Loan interest rates.
A Good Credit Score Can Help You Avail Better Insurance Deals
Opting for a Home Loan is a long-term commitment, which is why many choose to avail Home Loan Insurance. When you have a high Credit Score, you can enjoy relatively lower premiums on your Home Loan Insurance. Finserv MARKETS offers customized insurance plans to help protect your loved ones from the burden of paying off your debt, especially in your absence.
Without a doubt, a good Credit Score is an indispensable aspect of Home Loan application. It plays a crucial role in getting you the much-desired approval on your Home Loan application. So, make sure to check and maintain your score regularly!
With Finserv MARKETS , applying for a Bajaj Finserv Home Loan is a simple and completely hassle-free process. What’s more? The process is online and requires minimal paperwork and if you are eligible for PMAY scheme, you can enjoy additional benefits under Pradhan Mantri Awas Yojana scheme. So why wait? Get your home loan with Finserv MARKETS today and make your dream of owning a home, a reality!
“Finserv MARKETS , from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”