What is the Credit Score Requirement for Home Loans?

How is Credit Score Important for Home Loans?

What is a Good Credit Score for a Home Loan?

While there is no universal minimum score for home loans, every bank has a cut-off point to decide whether to accept or reject applications. Generally, a credit score or CIBIL score of 750 and above is considered good for home loan approval.

This is how your credit score or CIBIL score might affect your loan approval:

Credit Score

Effect on Your Loan

750 – 900

Good scores mean a high chance of your home loan requests being approved, The approval process will be quicker, and you will be in a position to negotiate better interest rates.

600 – 749

Average scores can still get approved for a home loan. However, lenders will consider other factors like monthly income, existing loans, employment stability, etc, The approval process will take longer and you will likely not get the best interest rates

300 – 599

Low scores and poor credit history will reduce your chances of getting a loan, But those few lenders who do offer you home loans might give you lower loan amounts, high interest rates, or request collaterals, If you get rejected, you need to improve your credit score to be eligible for a loan

How to Get a Home Loan with a Low Credit Score?

Can you Improve your Eligibility for Home Loans?

Frequently Asked Questions