A low CIBIL score is not something that you should fret about at all. It is especially true if you are looking to purchase a home with the help of a loan. After all, India’s real estate sector is picking up steam after it suffered a downward trend in the last few years.
You can take a home loan if you want to invest in the housing market for futuristic gains or to have a house you can convert into a home. If you are looking to get PNB Housing’s Home Loan approved with a low credit score, we have you covered.
Just to ensure we are all on the same page, let’s start by first understanding the CIBIL Score.
What Is a CIBIL Score?
A CIBIL score is a numerical representation given by credit bureau CIBIL. It takes your financial history to calculate your creditworthiness. The range varies between 300-900. A score of 750 or above is exemplary, while 650-750 marks good creditworthiness. PNB Housing uses this score to gauge your ability to repay the EMI as per schedule.
While it is true that the higher the score, the better are your chances of getting the loan approved. However, you should not be disheartened if you have a low CIBIL score.
Steps You Can Take
So, how can you get a loan approved with a low CIBIL score? It is not rocket science and is easily doable if you can adopt the advice we are sharing below. We also advise you to read PNB Housing Finance reviews to know that the lending institution makes the process of getting loan simpler for all people.
Apply With A Co-applicant/s
Your low credit score indicates a higher chance of not getting an approval on the loan amount required. So, one way to get the approval is to apply for the home loan with a co-applicant. Just a note, though, ensure that the co-applicant has a higher CIBIL score than you and meets all the eligibility criteria laid down by PNB Housing.
Do remember if the home loan application gets rejected it can reduce your credit score further. Double check if you and the co-applicant/s have the documents ready to upload filing to avoid application rejection.
Check your Report for Errors
Have you ever thought that the CIBIL score assigned to you may be incorrect? Yes, this is possible, for instance, if you have repaid a loan, but it is not reflecting on your credit report maintained by CIBIL. What you can do is go and check your credit report on CIBIL’s official website or call the helpline number provided on their website.
If there are errors, correct them so that you don’t face any issues during the application process. You can raise a dispute request and get the score corrected.
Ensure Repayment of Dues and Outstanding Payments
Not repaying dues and outstanding payments on time can have a negative impact on your credit score. Check if this is the case with any current loans or credit card bill payments. If so, we suggest, you start by repaying your current dues on time, to reduce arrears or defaulting on payments.
As and when you pay the dues on time, the CIBIL score will keep inching upwards and as soon as you reach the lowest limit required, you can apply for a PNB Housing Loan.
Wrapping up
You can see that it is possible to get a PNB Housing Loan with a low credit score. However, it is important that you take steps to keep your credit score high. The easiest way to keep the credit score high is to always repay dues on time (it includes both loans and credit card payments). Another rookie mistake to avoid is applying to multiple lenders in the hope of getting an approval. Just apply to one lender after understanding the terms and conditions, and your credit score will remain high.
PNB Housing is a reputable brand providing home loans to their customers throughout the country. Read the PNB Housing Finance reviews to get a better understanding of what to expect. You can expect to get a home loan approved from them even if you have a low credit score.
