Why Is Cibil Score Important For A Home-Loan?

A credit score also known as the CIBIL Score is known to be the main way to assess a loan seeker’s credibility and ability to pay off loans. In India, since RBI approves of this method to judge a person’s repayment ability, many banks do use the same to assess trustworthiness. A Cibil Score is a three-digit score which ranges anywhere between 300 to 900. So, in this case, CIBIL evaluates a person’s payment history, credit handling trends and existing banking process to award a final score.


The benefits of having a good credit score are that it can help a person seeking home loan to secure a low home loan interest rate. This ensures not just flexibility in repayments, but also awards one with great negotiating power and pertinent loan finances. However, on the flipside, if one has a bad CIBIL Score, then they can face delays in getting their loans processed and even higher interest rates.

So, what exactly is a good CIBIL score to have to get a home loan easily without hassle? Ideally, any score that is 750 and above is considered to be an excellent score for securing a home loan. Even though this score is considered ideal, one can get their home loan approved if their score is anyway between 650 and 750. However, 650 is considered to be the baseline score of getting a home loan and it is always advisable to score till 750 and above.