When applying for a home loan, the importance of a robust CIBIL score is of utmost significance. It lets your lender evaluate your creditworthiness. It shows if you have paid active and earlier EMIs on time or not.
If not, then a lender may consider you as an unsafe bet and don’t usually approve your home loan request.
But do you know how to apply for home loan if you are a CIBIL defaulter?
Yes, a home loan for CIBIL defaulters may be available if you follow a few tips.
Read on and know more!
Here’s how a home loan for CIBIL defaulter can be applied
- Apply for the lowest possible amount
Applying for a large housing loan amount when your CIBIL score is poor is a recipe for disaster. You should improve your probability of a home loan approval by applying for the lowest possible amount. A lower amount may be easier to repay, and your lender may oblige.
- Opt for a longer tenor
A longer tenor is beneficial for lenders as well as borrowers. It lets a borrower manage only a small EMI amount that they may find easier to repay on time. On the other hand, a lender earns more interest charges when a loan is repaid over a longer tenor.
- Pledge a property with high existing valuation
A home loan for CIBIL defaulters may also be available if you are able to keep a property as collateral having a higher current valuation. This way, a lender may be convinced to recover the loan money even in the case of defaults.
Along with these vital tricks, it is also possible to apply for a home loan for CIBIL defaulters using a joint loan feature. Even though the loan approval with a poor credit score is tough, following these discussed tips may boost your eligibility.
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