Thursday, October 21, 2021

Planning to borrow home loan? Pay attention to your CIBIL Score.

Author: Sachin Gupta | Find me on Twitter

Ok, you have identified the residential property you wish to buy. Now comes the financing part of it. A residential property may cost you 50 Lacs or more. You may have arranged for the down payment cost of approximately 10 Lacs and are now looking to borrow the home loan for remainder of the property cost.

Borrowing home loan means you will be paying EMIs for several years. Therefore, one must be responsible and confident to service the debt over a period of time. Before sanctioning such a huge amount to an individual borrower, the banks carry out comprehensive due diligence that includes checking your credit history, bank statements, income statements, job or business continuity.

CIBIL score is one such parameter that banks and financial institutions look into before sanctioning loan. What is CIBIL score? Credit Information Bureau (India) Limited (CIBIL) is India’s first Credit Information Company (CIC) founded in August 2000. CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to credit institutions in order to help evaluate and approve loan applications. (Definition Source: Wikipedia)

One can check the CIBIL score here


How can you maintain good CIBIL score?

Well, in order to maintain good CIBIL score, you must pay attention to the following factors:

  • Repayment:
First thing first, what is your repayment track record? In other words, are you paying your installments on previous loans or credit cards regularly within the stipulated timeline? If yes, then your CIBIL score is going to be good. Your ability to repay previous debt has 35% weight-age in calculation of the CIBIL Score. Therefore, make sure that you stick to due dates of servicing your EMIs.

  • Credit Utilization:
Credit utilization is the ratio of the
Balance amount that you owe to your lenders / Total of your credit card limits

Therefore, if your balance amount that you owe to lenders is high then it signals riskiness. The increase in balance amount indicates increase in repayment burden and may negatively impact your CIBIL score. Credit utilization has 30% weight-age in calculation your CIBIL score. Therefore to score high CIBIL score, keep your outstanding balance to banks and financial institutions as low as possible.

  • History of Debt servicing capacity:
Are you paying EMIs and credit installments successfully for several years? If yes, then this will have a positive impact on your CIBIL scores. Banks and financial institutions prefer applicants who have taken loans earlier and have serviced the debt regularly. It sends the signal that the individual has a long history of securing debt and has been responsible in his/her repayments. This has a weight-age of 15% in calculation of CIBIL score.

  • New Credit
If you have applied for too many loans or credit cards in recent times, then it has a negative impact on your CIBIL score. Banks and financial institutions will see this increased activity of loan applications as risky because your debt burden has increased and it may affect your repayment capacity. Therefore, be prudent with your loan applications. Unless, your income has increased substantially, do not apply for too many loans or credit cards at the same time or within a short interval of time. In other words, space out your loan applications prudently. This has a weight-age of 10% in calculation of CIBIL score.

  • Credit mix
Many a times, we have noticed that people have a great propensity to apply for unsecured loans. As the name suggests, unsecured loans are not secured by any mortgage or guarantee. If you have mostly availed unsecured loans (such as personal loans) or credit cards, then it will bring down your CIBIL score. Always have a mix of both secured loans and unsecured loans. Secured loans are car loan, home loan, etc. This has a weight-age of 10% in calculation of CIBIL score.


Now that, you have a thorough understanding of CIBIL scores and its impact on your loan availing ability, we hope that you will be disciplined in your finances.




Have any Questions?

74 comments:

  1. Hi this is a Pretty Good blog on Indian real estate. This article helped me understand the realty industry better. I would also like to tell that all post on this blog have been helpful in my learning experience.
    I too have Some Information for you Hope you will like it and it might also help you in writing further blog posts, if you are interested in property then go with Oh My God Noida

    ReplyDelete
  2. In my point of view this information is best for those who is seeking for home in ideal location of Nodia.
    ATS Allure Noida

    ReplyDelete
  3. CIBIL score is very important and people should give attention to improve it. Home loans have been very convenient thing for people who have good score but not for those people who have bad credit. Thank you for sharing the information.

    Regards,
    Apoorva

    ReplyDelete
  4. Thanks For Sharing This Nice Information.
    Boulevard by Bramhacorp Builders provides the ongoing construction project in pune with Premium office spaces now for sale!

    ReplyDelete
  5. Thanks for sharing the informative post. This is very useful to buy a dream house in Chennai.
    Builders in Chennai
    Properties in Chennai

    ReplyDelete
  6. Thanks for all your information.Website is very nice and informative content. Ready to Occupy Flats in Chennai

    ReplyDelete
  7. Hii Sachin Gupta, Thanks for Information. The Information is Really helpful for my business.Usefull points to maintaining good CIBIL score.

    We are also working on the same business. Kindly go through It. REAL ESTATE

    ReplyDelete
  8. Reliobrix Consulting is a main and conspicuous real estate consultants in Delhi, established in 2013 and operating from Noida. Reliobrix Consultancy provides numerous ranges of consultancy services in real estate business, especially in housing & residential projects. Reliobrix is a highly reputed firm & with its well experienced professionals it understands the core need of its customers and gives suggestion as per the requirement and budget.


    PANCHSHEEL HYNISH
    Shri Radha Sky Park in Noida Extension
    shri radha sky garden
    AMAATRA HOMES
    ARIHANT ABODE
    ACE ASPIRE

    ReplyDelete
  9. Much obliged to you for sharing this information.Do you need a loan.We are Legitimate and ensure credit moneylender. We are an organization with budgetary help. We credit assets out to people needing money related help, that have a low premium individual advances to assemble a transporter. sobha hartland dubai

    ReplyDelete
  10. This is an informative blog which has a detailed description of the the top builders in bhopal is among the best builders in bhopal who has the property in every direction of Bhopal Their rates are also than others and the quality is remarkable.

    ReplyDelete
  11. Nice Blog! Keep Sharing This Kind of useful Information.I would like to know more information about Plot in Haridwar, because it is very Useful Blog Thanks for sharing...

    ReplyDelete

  12. GET YOUR BLANK ATM AND CREDIT CARD AT

    AFFORDABLE PRICE
    *We sell this cards to all our

    customers and interested buyers

    worldwide,
    the card has a daily withdrawal limit

    of $5000 and up to $50,000 spending
    limit in stores and unlimited on POS.*
    *email blankatm988@gmail.com
    *you can also call or whatsapp us

    Contact us today for more

    enlightenment
    +44(7440495540.

    **WE OFFER THE FOLLOWING**
    1)WESTERN UNION TRANSFERS/MONEY GRAM

    TRANSFER
    2)BITCOIN INVESTMENTS
    3)BANKS TRANSFERS
    4)CRYPTO CURRENCY MINNING
    5)BUYING OF GIFT CARDS
    6)LOADING OF ACCOUNTS
    7)WALMART TRANSFERS
    8)BANKS LOGINS
    9)REMOVING OF NAME FROM DEBIT RECORD

    AND CRIMINAL RECORD
    10)BANK HACKING

    *BEWARE OF SCAMMERS AND FAKE HACKERS

    IMPERSONATING US BUT THEY ARE NOT FROM
    US CONTACT US ONLY VIA THIS CONTACT *
    WE ARE REAL AND LEGIT...........2019

    FUNDS/FORGET ABOUT GETTING A LOAN
    *email blankatm988@gmail.com

    ReplyDelete
  13. Dwello is the right place to buy Homes. Buy your new homes with confidence with dwello. Dwello - Right Address is Waiting.
    Shanti Villa
    Laxmi Sadan
    Kalpataru Vienta
    Fortune Paradise
    Amberley Tower

    ReplyDelete
  14. Thank you very much for for your great information. It really makes me happy and I am satisfied with the arrangement of your post. You are really a talented person I have ever seen. I will keep following you forever. If you have time you can check this site and give me suggestion.
    Rent Apartment Jakarta

    ReplyDelete
  15. We are the leading real estate mobile app development company bringing the best in class services with the real estate auction management software. Being a pro in the business, we experiment with the latest technologies to carve out exactly what's necessary.

    ReplyDelete
  16. We are a top real estate software development company that provides custom real estate software solutions to seamlessly manage workflows and handle structured and unstructured data to nurture new business opportunities. We enable digital innovations to invade all the spheres of modern real estate and reshape it to match the new reality.

    ReplyDelete
  17. Property Management Training


    Our eBook will guide you from the initial launch of your business, operating it, and growing your portfolio to 100 properties


    to get more - http://www.propertymanagementtraininghq.com/

    ReplyDelete
  18. Thanks for the information. Gauntlet Funding is one of the best hard money lenders in Georgia that can provide the capital you need to take on any project. The increasing popularity and economic growth have made Georgia a hot real estate market. Aside from comparative affordability, there are several other reasons people move to Georgia. Visit - Gauntlet Funding

    ReplyDelete
  19. very helpful. Thank you so much! Find an property for rent near me, condo or house for rent on volgopoint.com Discover apartment rentals, townhomes and many other types of rentals that suit your needs.
    property for rent near me

    ReplyDelete
  20. property for rent near me
    There are many advantages in looking out for homes for rent in the city you currently live in. Renting a home is sometimes a better idea than buying one.
    Rent And Housing Everything You Need To Know

    ReplyDelete
  21. Suppose you were a government job holder. Recently you have been retired from your job. After retiring from your office the government gives you a pension fund. To this fund, you want to build up a building. But you need more money to start your building development work. That's why you need suggestions from mortgage or bank agents. But no one gives you the ultimate solution in your financial credit. All are giving you bad credit statements. In that case you can go through the bad credit mortgage whitby company. They give you a good suggestion in your financial credit and they will help you at their best. So that you can get your loan on an easy repayment process.

    ReplyDelete
  22. Sealand Services perform crane load test services in Cameroon for davits and rescue boats to assure safe operations of ships loading and handling by performing all load tests at 125% of the rated capacity to ensure that material handling equipment is more than enough for required needs.

    ReplyDelete
  23. Here you Provided really good information about Home loan, it is really good. Properties in Udaipur

    ReplyDelete
  24. With the help of theBitcoinExplained series, it is easier for everyone to form their own opinion of Bitcoin and assess the current potential of the digital currency for themselves. In order to keep an eye on the future development of Bitcoin, the most important updates concerning Bitcoin will always be discussed in Vontobel's cryptoworld.

    ReplyDelete
  25. Contact Dynamic Netsoft Technologies, We're a Microsoft Certified Gold Partners and we're experts in providing real estate management software

    ReplyDelete
  26. Very Nice Post. I was checking constantly this blog and I am impressed! Very useful info specifically the last part ?? I care for such information much. Thank you and good luck.
    Best Housing Loan in Delhi
    Business Loan
    Personal Loan
    Car Loan
    Project Funding

    ReplyDelete
  27. Nice Blog
    Plese Visit my Blog Geography Tutar Online
    WE have Best Tutar.In Delhi NCR And Noida

    ReplyDelete
  28. The details on this blog are very impressive. I also have info about
    ATS Kingston Heath Noida

    Birla Niyaara Worli Mumbai

    DLF One Midtown Delhi
    Real estate that is an imperishable asset, ever increasing in value.

    ReplyDelete
  29. This comment has been removed by the author.

    ReplyDelete
  30. The first is how long you've been selling or renting property. You need an agent that has been in the area for a while. It's also best to choose someone with experience. Source for more about Property for Rent or Let Docklands London E14 | Fisks London.

    ReplyDelete
  31. This content is written very well. Your use of formatting when making your points makes your observations very clear and easy to understand. Birla Estates Birla Estates Private Limited is an India based real estate company.

    ReplyDelete
  32. Very intresting info ! this is nice blog!
    I am Sharing This like Info Properties In Pakistan
    This is Very Intersing info Please Check it .. Blog Profile Thanking you
    bloglovin
    goodreads
    exchangle
    etsy
    devpost

    ReplyDelete
  33. This comment has been removed by the author.

    ReplyDelete
  34. Home is something special that we cherish dearly. Owning a house is one of the most expensive purchases you will ever make. The house will grow with your family and with you! Home loans play a crucial role in helping people become homeowners. If you take out a home loan, you should pay it off as soon as possible! Let's say you took out a loan with a maximum term. Is it your intention to pay off your home loan in 30 years? If you plan well, it is possible to clear it as fast as possible. Tips you can use if you're planning on taking out a home Loan in Varanasi .

    ReplyDelete
  35. Good To see Your Blog
    I like it !
    It's the greatest amusement center in this engaging society. Restaurants in Bahria Town Karachi Amusement park is an appropriately arranged, excellent spot giving total diversion and eating bundles to families.

    ReplyDelete
  36. Experion is one of the best real estate developers that provide thought leadership in action, transparency in the transaction, and client input in our product development, transforming every interaction into one-of-a-kind, satisfying, interesting, and enduring experiences.

    ReplyDelete
  37. Experion's Heartsong residential complex, which spans 15 acres, offers an elegantly and effectively designed air-conditioned 2 bhk apartment that provides ease, comfort, and connectivity that exudes casual elegance.

    ReplyDelete
  38. An outstanding collection of elegantly and economically designed air-conditioned apartments is available at the Heartsong project of the Experion company in Gurgaon. Homebuyers can take their pick of a 2 bhk apartment which is ready to become a destination for convenience, comfort, and connectivity that exudes casual elegance.

    ReplyDelete
  39. Love, hopes, and goals are the components of a home. It is a location where you make lifelong memories with your loved ones. Homebuyers looking for Flats for sale in Lucknow must connect with Experion company’s project in the city that offers quick access to the city’s hotspot.

    ReplyDelete
  40. Every project of the Experion corporation has a vision. Every initiative upholds our philosophy, "the good side of life," in every way. Every architectural detail and nuance regarding the 4 bhk apartment is interlaced with the meticulousness we seek in perfection and is ready to become a destination for ease, comfort, and connectivity that exudes casual elegance.

    ReplyDelete
  41. Lucknow is a hub for modern technology at the moment, and the city's real estate development shows that it has experienced an economic boom. If you are looking to buy Flats for sale in Lucknow connect with the Experion company’s development project in the city. Apartments with air conditioning are available in this mixed-use building, which is situated in a desirable area.

    ReplyDelete
  42. Experion Company's Windchants project is offering the highest quality 4 bhk apartment with expansive landscaped lawns, glistening pools, open-air jacuzzi, specialised zones for youngsters, and health and wellness facilities. At this project, everything is close by and scrollable.

    ReplyDelete
  43. Gurgaon is a satellite city in the NCR and one of India's most profitable new real estate markets. If you are looking to invest in a residential property in Gurgaon you can connect with the Experion company. We think that positive interactions create enduring bonds.

    ReplyDelete
  44. In the city of Lucknow, tradition and modernization coexist harmoniously. The capital of Uttar Pradesh exudes a timeless charm, warmth, and a sense of nostalgia. It is also known as "the city of Nawabs1”. For homebuyers looking for Flats for sale in Lucknow Experion company’s Experion capital is the best choice. The project offers state-of-the-art living as well as prime locations for commercial and retail spaces.

    ReplyDelete
  45. A first-rate luxury residential development the Windchants project of the experion company is a well-known name in the real estate market for offering the best quality 4 bhk apartment . Here enjoy an infinite glimpse of the beautifully designed landscape. Towers are positioned to take use of as much natural light and airflow as possible.

    ReplyDelete
  46. For unique, positive, engaging and memorable experiences connect with us at the Experion. Our bestseller project Heartstong offers customers a vast variety of Luxury apartments in Gurgaon . This project is equipped with development features like a car washing bay, groceries store, and a large swimming pool with all its apartment units.

    ReplyDelete
  47. For huge numbers of people around the world, property purchasing is one of their top priorities in life. Experion company is turning out to be the best choice for Flats for sale in Lucknow . The presence of numerous commercial and retail buildings nearby makes this project a desirable and practical place to live.

    ReplyDelete
  48. This comment has been removed by the author.

    ReplyDelete
  49. At Top Level, we take you along every step of the way whether it’s to buy, sell or rent real estate in the UAE. We also offer assistance in terms of obtaining residency permits in the UAE.
    While you may find several real estate agents in Dubai Penthouses For Rent In Dubai it is important to do your research before you decide to work with them.It is ideal to move ahead with a renowned realtor in Dubai that has a successful client portfolio to showcase along with credible reviews and great returns for investors.
    Real estate in UAE is quite lucrative and often attracts investors and residents from all over the world, making it a hot market throughout the year irrespective of global events.
    At Top Level, we offer you some of the most premium options within real estate in UAE as well as the best real estate agents in Dubai. If you’re looking for a realtor in Dubai and want to scour the thriving market of real estate in UAE be sure to get in touch with us!

    ReplyDelete
  50. Everyone prefers an investment that generates income over one that grows in value over time. If you are looking to invest in a 2 bhk apartment property then Experion company is the best real estate developer in the market. Being a 100% FDI-funded real estate developer, we successfully launched and constructed three residential development projects.

    ReplyDelete
  51. At Experion, we think that positive interactions create enduring bonds. If you are looking to buy flats in Lucknow you can connect with our experion capital project that offers transparency in transactions, thought-leadership in action and customer insight. These air-conditioned flats have close proximity to the hotspots of the city.

    ReplyDelete
  52. Known for their superior quality construction and attention to detail, the Experion firm’s Windchant project features the best luxury apartments in Gurgaon . On the 7th floor of this development, the most prominent residential skywalk in Asia has been built.

    ReplyDelete
  53. Experion Capital, Flats for sale in Lucknow a mixed-use building owned by the Experion Corporation, provides air-conditioned apartments at Vibhuti Khand, right near the Indira Gandhi Pratishthan. The presence of numerous commercial and retail buildings nearby is a plus point.

    ReplyDelete
  54. Joseph Haymore Florida Florida listens attentively to their clients' needs and preferences and tailor their services accordingly. This client-centered approach ensures a personalized and satisfying experience.

    ReplyDelete
  55. The information on this blog is great. keep posting more blogs.
    Get Residential project on Wardha road Nagpur.

    ReplyDelete
  56. Mocket Group is the all-in-one destination for finding the perfect real estate property listing in the developing region of Noida NCR.
    orion 132

    ReplyDelete
  57. Very Informative Blog! Thanks for sharing with us.

    If you are looking luxury segment project, then AIGIN Royal Park will be a good project for your living purposes. Come & visit the project & get their offers. For more query call @ 8929888700.

    ReplyDelete
  58. Taking out a home loan entails committing to monthly EMIs for an extended duration. Consequently, it's crucial to possess both responsibility and confidence in managing this debt throughout the repayment period.
    Hotels near india expo mart greater noida

    ReplyDelete