{"id":182,"date":"2020-04-19T17:34:01","date_gmt":"2020-04-19T17:34:01","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=182"},"modified":"2022-09-13T12:59:19","modified_gmt":"2022-09-13T12:59:19","slug":"cibil-and-its-significance-in-home-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/cibil-and-its-significance-in-home-loan\/","title":{"rendered":"CIBIL And Its Significance In Home Loan"},"content":{"rendered":"\n
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Amit\napplies with bank for his home loan requirement. Apparently his loan\napplication gets rejected on account of poor CIBIL record. Amit never bothered\nto check nor did he keep track of his CIBIL history until recently when he\nfaced rejection for his home loan requirement. Like Amit there are many who do\nnot bother to keep a regular track of their CIBILs and thereby creates hurdles for\nthemselves in future. <\/p>\n\n\n\n

The\nignorance towards the significance of CIBIL can prove fatal in due course of\ntime especially when you engage to apply for a home loan. Those who understand\nthe importance of CIBIL are always alert and constantly monitor their CIBIL\nfrom time to time. CIBIL has a cruel role while applying for home loan, so it\nis very important for you to Know- what is CIBIL, its significant role in home\nloan and what are the do\u2019s and don\u2019ts for CIBIL scores.<\/p>\n\n\n\n

What IS CIBIL?<\/strong><\/h3>\n\n\n\n

CIBIL\nstands for Credit Information Bureau of India.\nIt is the authority that provides the credit ratings to you on the basis of the\nrepayment track records of your loans taken, which we all know by the name\nCIBIL Score. It keeps the track of your every credit transaction and thereby\nmaintains all your credit records.<\/p>\n\n\n\n

CIBIL Score\u2019s Significance In Home\nLoan<\/strong><\/h3>\n\n\n\n

A CIBIL score is of great\nimportance in home loan industry. It is determined based on your several\nfacts and details like payment history, outstanding and opening loan amounts, number\nand types of loan accounts, credit enquiries and guarantors on the loan, etc. Bank ascertains the risk involved in funding your home loan by\ndrawing your credit history-CIBIL scores from CIBIL and hence draws a base\nwhether to approve or reject your home loan application. An average score of\n750 and above is considered as a good CIBIL score in home loan industry providing the base for approving your home loan subject to your income\neligibility. A poor\/low CIBIL score is a definite nod for rejections in home\nloan. <\/p>\n\n\n\n

You CIBIL report contain the following in-depth information on:<\/p>\n\n\n\n

1) Number of loan taken.<\/p>\n\n\n\n

2) Type of loan taken.<\/p>\n\n\n\n

3) Loan amount taken.<\/p>\n\n\n\n

4) Bank from where the loan is taken.<\/p>\n\n\n\n

5) Number of loan inquiries made.<\/p>\n\n\n\n

6) Loan commencement date.<\/p>\n\n\n\n

7) Loan closure information on date and amount.<\/p>\n\n\n\n

8) Settled loan dues.<\/p>\n\n\n\n

9) Outstanding loan dues not settled if any.<\/p>\n\n\n\n

10) Overdue payment on credit cards.<\/p>\n\n\n\n

11) Loans defaulted.<\/p>\n\n\n\n

12) Repayment track record of the loan for the EMI bounces if\nany.<\/p>\n\n\n\n

The low CIBIL scores affect you\nin many ways. It hampers your loan eligibility, refrains you from getting a\nbetter deal on rate of interest, doesn\u2019t allow you to make balance transfer of\nyour loan, reject your future loan applications also do not allow you to take a\ntop-up facility on your existing loan.<\/p>\n\n\n\n

Do\u2019s For CIBIL Score<\/strong><\/h3>\n\n\n\n

1) Regularly\nmonitor your CIBIL score. Many online companies are now allowing checking your\nCIBIL score online with no extra cost. It helps you to monitor your CIBIL score\nfrom time to time.<\/p>\n\n\n\n

2) Make timely\npayments of your loan EMIs. Maintain sufficient balance in your account for\nsmooth repayments of your EMIs. <\/p>\n\n\n\n

3) If you hold\nany outstanding debt over a period and have made settlement with the bank, do\nnot forget to take the debt closure letter or the no claim letter from the\nbank.  <\/p>\n\n\n\n

Don\u2019t For CIBIL Score<\/strong><\/p>\n\n\n\n

 1) Be cautious when you sign as a guarantor\nfor anyone. A signing authority for guarantor means you are equally liable to\nrepay the loan in case of default by the loan applicant.     <\/p>\n\n\n\n

2)\nDo not take it lightly – the small EMI bounces. Even if the EMI is as small as\nRs. 1000 or Rs. 2000 per month do not skip it. \nA regulator and timely payment add positively to your credit score, and\ngives you an upper hand when you apply for a fresh new home loan.<\/p>\n\n\n\n

3)\nAvoid doing late payments. Many of you assume that late payments do not affect.\nThey are under the impression that if you are paying the EMI and have not\ndefault the loan it doesn\u2019t affect you. But you better clear your\nmisconception. Even if you skip a single EMI it means that the EMI is bounced\nand it definitely has adverse effect on your CIBIL score. <\/p>\n\n\n\n

4)\nMany a times you find that you are been cheated on the additional charges,\nundisclosed charges, loan charges, high interest rates, etc. by the lender\u2019s\nand their service executives, and on noticing the same you stop making payments\ntowards your EMI debt that eventually gets accumulated and is disclosed as bad\ndebts in your CIBIL, reclaiming you as a defaulter. It is suggested of you, to\nspeak to the banking officials before you stop making the EMI payment and ask\nfor a solution. Also take preliminary precaution to recheck the offers before\nyou choose to apply with the selective bank for your home loan requirement.<\/p>\n\n\n\n

5)\nDo not blindly apply with multiple banks if your loan gets rejected from one\nbank, unless you learn the reason for your loan rejection. Multiple enquires \/\napplications get reflected in CIBIL and it reduces your CIBIL score. <\/p>\n\n\n\n

6) Do not add a co-applicant with poor CIBIL score to your loan application. A co-applicant in home loan is equally liable to pay the loan if you as an applicant default the payments. This increases the risk for the bank and hence there exists chances of your loan being rejected by the bank.<\/p>\n\n\n\n

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By,<\/p>\n\n\n\n

Loanfasttrack<\/p>\n\n\n\n

Loanfasttrack<\/strong><\/a> is a Mumbai-based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai<\/strong><\/a>, mortgage loan in Mumbai<\/strong><\/a>, personal loan in Mumbai<\/strong>,<\/a> <\/a>unsecured business loans<\/strong><\/a>, <\/strong>home loan transfer<\/strong><\/a>, top-up loans<\/strong><\/a>, and loan transfers<\/strong><\/a>. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.  <\/p>\n\n\n\n

Contact Loanfasttrack:<\/strong> <\/strong><\/p>\n\n\n\n

Website –<\/strong> <\/strong>www.loanfasttrack.com<\/em><\/strong><\/a><\/p>\n\n\n\n

Email – <\/strong>info@loanfasttrack.com<\/em><\/strong><\/a><\/p>\n\n\n\n

Tel –<\/strong> <\/strong>9321020476<\/em><\/strong><\/p>\n\n\n\n

Loanfasttrack\u2019s specialized services include providing:<\/p>\n\n\n\n