A dream house is an emotion. You can easily realize this by opting for a home loan. Though getting a home loan is quite a tough and time-consuming process, it would become easy if you have a good credit score. In case you make a late or default loan payment, it would adversely impact your credit score and you will be tagged as a Cibil™ defaulter with a bad credit score. If you are a Cibil™ defaulter it is quite difficult for you to opt for a home loan. So, the first and foremost step is to improve your credit score. 

How can Cibil™ defaulter get a Home Loan?

Here are some important procedures for  Cibil™ defaulters to get a home loan:

  • First of all, it is important to clear off all the outstanding credit card bills, loans, EMIs, etc to improve your credit score to get a home loan. 
  •  After completing the loan repayment, you must get a NOC, or No Objection certificate from the lender to certify you as an eligible candidate to avail loan. 
  • If a  Cibil™ defaulter earns a high salary, then he/she may be eligible to opt for a home loan. A person who makes a higher income is considered to have a higher repayment capability.
  • The lender will charge a higher interest rate for a  Cibil™ defaulter on a home loan.
  • There is an increasing difficulty for  Cibil™ defaulters to acquire a home loan. So, they can register a loan against their credit-worthy spouse as a co-applicant for availing of a home loan.

Here are certain Conditions Under Which a Cibil™ defaulter Can Get a Home Loan

Improved earnings

If you have a  Cibil™ default but you are earning a  decent salary the lenders may approve your home loan.

Occupation stability 

If you earn a  higher salary but do not have professional stability may not be accepted by lenders. Therefore, you need to keep professional steadiness as well.

Possession of property with high value 

In the case of a home loan, the property acts as collateral against which the bank authorizes the loan amount. If the value of the property is high, there is a chance of greater eligibility to avail of a larger loan amount, In this situation, there is less importance to Cibil™ score. 

If the co-applicant's credit score is excellent.

You are aware that you can have a co-applicant on your home loan application, and their credit score may assist you to get approved. A co-applicant maintaining a good Credit score is easier for the lender to trust repayment and approve the loan.

Documents that are acceptable for late payments

Some lenders may check your applications to see whether customers can explain the payment delays and talk about the paperwork. Many reputed lenders may not be ready to provide a home loan to a customer with a bad credit history. Therefore, it is advisable to maintain a strong credit score and check whether all other elements are perfect.