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If your credit score is low that affects your financial standing, therefore a good credit score is in your best interest. There are important factors that is looked at before credit is attained. Banks and NBFCs do consider certain crucial financial aspects before sanctioning any type of credit line to the customers applying for loans

People with low credit score have difficulty in getting home loans or any credit line, as the bank considers the applicant risky.

It is recommended to know your credit score before applying for any loan. Not knowing your credit score will reduce your chances in getting a loan or credit card. Credit score ranges between 300-900 that depicts your creditworthiness and repayment capability. As per CIBIL (Credit Information Bureau (India) Limited), customers with credit score of more than 750 have 79% chances of getting the loan sanctioned. Poor credit score makes it very difficult for the customer to get home loans even at higher interest rates.


  • Meet with NBFCs: Non-Banking Financial Companies (NBFCs) are the best way to get home loans but the interest rates are higher than private banks. Examples of leading NBFCs include Tata Capital, Bajaj Finance, Cholamandalam Finance, Power Finance, Muthoot Finance etc.
  • Speak to HFCs: Housing Finance Companies are a good option for choosing home loan for customers with low credit score. They do not depend entirely on the credit score but takes customers’ financial history as the base criteria. Few of the major HFCs include Aditya Birla Housing Finance, Dewan Housing Finance Limited, Capital First Housing Finance, Fasttrack Housing Finance, Indiabulls Housing, Fullerton India Finance, etc.
  • Salary package: A good salary of the customer is also considered as a aid to get the loan. If the earning is good enough, then various lenders shall sanction the home loan.
  • Spouse’ repayment history or CIBIL score: In case your CIBIL score is low but your spouse maintains a good CIBIL score, then you can seek your spouses’ assistance in getting home loan sanctioned. By making your spouse a joint account holder, you can conveniently get a loan sanctioned.


  • Repaying loan EMIs or card payment on time
  • Improving your CIBIL score
  • Avoid applying for any fresh credit
  • Avoid closing your older accounts
  • Checking inaccuracies in your credit report

Each bank has their own interest rate and one should understand all the home loan requirements before taking up a loan. It is possible to get your dream home, even if your credit score is low.


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