One of the most important financial metrics that banks and lending institutions look for in an individual is the credit score. Since the credit score in India is primarily managed by CIBIL, which is a credit information company, it is also referred to as the CIBIL score. To get this score, what CIBIL actually does is analyze your credit history and assigns you a score based on your history.
Now, this credit history check is done by financial institutions to determine the credit worthiness of an individual. Depending on the score of the individual, the institution determines whether or not the said person in question is eligible for a loan or a credit facility. The CIBIL score range starts from 300 and goes all the way up to 900. And as you might have already guessed, the higher the score, the better the chances are for your loan to get approved.
However, the importance of the credit score isn’t limited to just loan approvals. In fact, the CIBIL score range of a person is actually used to determine the rate of interest of a loan or a credit facility. The higher the score, the better your chances are for receiving an attractive rate of interest.
Okay so, now that we’ve established the importance of the CIBIL score, here’s a question that’s probably on your mind now – can you get a home loan without a credit history? Continue reading to find out the answer.
Can you Avail a Home Loan Without a Credit History Check?
The answer to this question is quite simple. Of course you can. While the credit score is a very important metric that’s used by lending institutions to determine your eligibility for a credit facility, it is not the only sole determining factor.
As a matter of fact, other than your CIBIL score range, financial institutions examine a host of other parameters as well. For instance, they take a look at your age, your income levels, your debt-to-income ratio, and your employment status, among others. If you manage to successfully satisfy all of the other criteria, lending institutions may still be willing to offer you a home loan even if you don’t have a credit history or a desirable CIBIL score range.
That said, here’s something that you should know. If your credit history check reveals that you have no history, financial institutions may sometimes ask for additional supporting documents. Alternatively, they may even push for a guarantee from a third party with a good enough credit score. And finally, you may also be asked to furnish an additional collateral to secure your home loan as well.
Also, it is important to keep in mind that the parameters that banks and other financial institutions have for determining the home loan eligibility of a person with no credit history is likely to be different.
Want to get a credit history check to determine your CIBIL score range before applying for a home loan or any other credit facility? Finserv MARKETS is the perfect place for that. It is an online marketplace for all things finance. In addition to getting your credit history checked, you can also apply for a home loan right from the portal itself. So, make a visit to Finserv MARKETS right away.