How to Avail Loan Against Property with a Low CIBIL Score

For lenders, CIBIL (Credit Information Bureau India Ltd.) is one of the most important parameters when it comes to judging whether an individual would be able to repay back a loan or not. This applies even when pledging an asset of high value.

However, many times people can pledge their assets but owing to very low CIBIL score, they become ineligible for getting a mortgage loan. If you have a similar situation, then what should you do, read on to find out -

> Use a Co-Applicant

If you have someone in your circle, including your spouse, who has a good CIBIL score and has a regular income, then using that person as a co-applicant can reduce greatly better your chances of getting your loan approved.

> Bettering CIBIL Score

There are many ways of improving your CIBIL score including paying back old debts, paying your installments timely, and keeping your credit card utilization in check. Doing these will surely improve your CIBIL score.

Additional Read: How to Improve Credit Score to get a Loan Against Property?

> Having a Guarantor

Applying for a loan entails being eligible for all the conditions which are put forth by the lender. Thus, if you do not have a good CIBIL Score, then despite having a property, you will not be able to apply.

This can be overcome to a great extent by getting a guarantor who can vouch for your repayment capabilities. For best results, choose a guarantor who has a regular source of income and a good credit score.

Bearing these tips will surely better your chances of getting a loan from lenders. If you are salaried and looking for a loan against property, there are many lenders who offer loans of up to Rs. 1 crore and Rs. 3.5 crore if you are self-employed. A number of benefits are provided including minimal documentation, online process, and an online loan account, and flexible tenor.

Also Read: Tips to avail Loan Against Property with a Low CIBIL Score