Home Loan Cibil Score: The Reserve Bank of India (RBI) has recently cut the repo rate by 25 basis points. Home loan interest rates are expected to be reduced after this decision. However, banks have not started making any announcement for low home loan rates. It is expected that by reducing the repo rate of RBI, banks will also reduce home loan interest rate soon. This will provide relief to customers taking loans in EMI.
Should you take a home loan now?
If you are thinking of taking a home loan to buy a new house, then it can be beneficial to wait a little. It usually takes some time for banks to make interest rate cuts to customers. Therefore, it may be that in a few weeks the banks announce to reduce the interest rate. Then later you will be able to get a loan at a low interest rate.
How important credit score for home loan?
Credit score is the most important to take a home loan. This score shows your better finance management. The bank determines the eligibility of your loan based on this. Usually a score between 650 and 700 is necessary for the loan, but the possibility of getting a loan at a low interest rate increases if scored 750 or more.
Chances of passing loan based on credit score
More than 750 – easily loan approval and low interest rate.
700 to 749 – There is good possibility of getting a loan, but the interest rate may be slightly higher.
650 to 699 – Loan can be found, but the conditions will be tight and the interest rate will be higher.
Less than 650 – Loans can be found difficult, bank co -applicant or more down payment.
How to increase the chances of getting a home loan?
1. Improve credit score – If your credit score is low, then keep these things in mind to improve it.
Pay the EMI and credit card bill on time. Keep your credit card less than 30%. Avoid taking several loans simultaneously. In your CIBIL report, check any mistake and get it corrected. Maintain the balance of home loans or auto loans such as secure loan and credit cards like unique loan.
2. Make more down payment
If you can make a down payment of up to 20-30%, the bank will give you a loan easily and the interest rate can also be reduced.
3. Apply with coal-applicant
If your credit score is low, you can apply for a loan with your spouse or a family member, which will increase the chances of getting approval.
4. Take a loan for a long period
If you keep the loan period 20-25 years, then your EMI will be reduced, which will give more confidence in your ability to repay the loan.
5. Show regular income source
Banks give priority to the same applicants who are stable or regular income source. If you are a salary, submit documents like salary slip, bank statement and income tax return.
Gold Price: Gold reached the golden peak, know how long it is to reach 1 lakh rupees