How to Avail Home Loan with CIBIL Score of Minus 1?
Nov 20, 2018 Home Loan
Whenever you apply for a home loan, the loan lender checks your CIBIL score to make sure whether you are a good candidate for the loan or not. Generally, a CIBIL score from 500 to 700 is considered good, but a lot of people are not aware that there is another CIBIL score that ranges from 1 to 5. And yes, under certain circumstances it is possible for people to get the loan if their score is -1.
- Before we proceed any further let us understand what factors contribute to the CIBIL score?
- Information like age, income, place of residence, office address etc.
- The volume of loan applications
- Number of loan enquiries
- Type of credit: secured or unsecured
- Credit utilisation ration- it is the ration of how much credit is taken by you to how much is offered.
What is the CIBIL score from 1 to 5?
The applicants who have just entered the field of credit score, less than six months, have the score ranging between 1- 5. The score 5 denotes the lowest possibility of the borrower to default on the repayment. Whereas, the score 1 indicates that the borrower has the highest possibility to default on the loan repayment.
What is CIBIL score minus 1?
The score -1 denotes that you have no credit history and there is nothing to track to know about your repayment habits. It is also known as ‘no history’ or ‘NH’. With no credit history to look at, nothing to assess your worthiness with, the CIBIL will assign you with score minus 1.
In general, it is difficult for people with CIBIL score minus 1 to get a loan approved for themselves. Lenders have internal policies to appraise and sanction home loan cases with the credit history of fewer than six months. The banks can approve the loan by going through your employer details, your job details, your income, KYC papers.
In general, it is difficult for people with CIBIL score minus 1 to get a loan approved for themselves. Lenders have internal policies to appraise and sanction home loan cases with the credit history of fewer than six months. The banks can approve the loan by going through your employer details, your job details, your income, KYC papers.
How to get a home loan with CIBIL score of minus 1?
It may be difficult to get the home loan with a score of minus 1, but it is not impossible. You will have to make a good case of yourself and make your lender believe why they should trust you and grant you the home loan. You should submit your income tax documents, your payment receipts, average bank balance, and your appraisal letter, a number of assets, bonus and reimbursement received.
If you are the co-applicant in the home loan, then you must show them the past credit history of the person you are applying with. This will help the lender to assess their credit history and spending habits. Once the loan has been disbursed it is advised that you should not default on any monthly EMI. This will help in making you CIBIL score look better.
If you are the co-applicant in the home loan, then you must show them the past credit history of the person you are applying with. This will help the lender to assess their credit history and spending habits. Once the loan has been disbursed it is advised that you should not default on any monthly EMI. This will help in making you CIBIL score look better.
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