Can you get a Home Loan with a low CIBIL score?

Buying our own home is a dream that many of us nurture from the day we start working. It is the ultimate goal - a sign that we’ve made it on our own. But often, a low CIBIL score can get in the way of obtaining a home loan.

A CIBIL score above 750 is considered to be very good. A score of around 600 or less is considered poor. This score is the cumulative result of years of financial behaviour. So, there can be many reasons why your CIBIL score is on the lower side.

Can you get a home loan with a low CIBIL score?

Yes! There are several ways you can work around this problem.

A low CIBIL score indicates that one might not be the most reliable individual when it comes to repaying their bills or debt. The only solution is to show that you are creditworthy. 

How can you do that?

1. You can opt for home loans where you apply jointly with a co-applicant. This reduces the risk from a single borrower and helps add credibility. It is beneficial if your co-applicant has a higher CIBIL score.

Axis Bank’s Asha Home Loan is a good example. If you have a combined monthly income of ₹ 8,000 or more, you are eligible to apply for it. This loan is meant for first-time homeowners, and the entire process is designed for comfort and convenience. You can get a loan for a maximum value of ₹ 35 lakhs.

2. Ensure all your EMIs are paid on time. Adopting this habit will work in your favour over time and will improve your CIBIL score.

Many banks reward this habit of timely repayment by introducing rewards and favourable terms. Axis Bank’s Shubh Aarambh Home Loan offers 12 EMIs off! Since home loans carry large amounts, getting 12 EMIs off is a huge benefit.

A mandatory criterion is that you should not have any dues pending for more than 30 days. If you have dues pending for more than 90 days, you automatically become ineligible for this loan.

[Also Read:  Difference Between Home loan and Mortgage Loan]

3. The third method is a more strategic one. It makes use of existing relationships to establish credibility. This acts as a proxy for the low CIBIL score.

For example, consider Axis Bank’s Top-Up Loan. This loan is provided to existing home loan customers and offers easy access to finance as a top-up to the original credit. 

You can borrow up to ₹ 50 lakhs and use the top-up for other purposes. You can club the repayment for the top-up with the original repayment plan for the home loan.

Thus, you get additional money at the same rate of interest. You won't have to go through a separate application process or provide additional documentation. All of this is accessible because you’re an existing customer. 

Conclusion

You can still avail of a home loan, even if you have a low CIBIL score. Axis Bank home loans have bridged the gap and provided easy access to home loans. With easy repayment plans and flexible EMI options, the loans are structured to make it easier for retail customers, particularly first-time homeowners. You can get access to easy credit at low interest rates, allowing you to make your dream of owning a home, a reality. Browse through Axis Bank's home loan plans and take your pick.

Want to calculate the EMI on a home loan? Check out Axis Bank's interactive home loan EMI calculator & interest rates on home loan.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.