Before the digital era began, home loan processing was very unpredictable. However, with digitisation, a whole new world of instant credit and instant loans was formed. Technological initiatives coupled with credit processes has transformed the entire customer experience forming a lending ecosystem. Now a day’s banks and institutions rely more on credit reports generated by credit information agency – CIBIL for gauging a loan applicant. An applicant with a score of 750 or above can get a home loan smoothly.
Low interest rates on housing loan and IT benefits have induced many to own a property. Nowadays CIBIL is helping borrowers to check the best loan available based on his/her credit scores and history. When a borrower logs on to CIBIL’s website to check the credit score, he has the option to apply for a loan. However, one needs to ensure the timely repayment of home loan or any other loan to build a good credit history. Loan repayment does impact your credit score in a big way and few important things one need to keep in mind for improving the credit score.
On time payment – Late payments are not an option when you need to improve your credit score. On time payment makes your profile better and stronger.
Low credit and borrowings – Reduce the tendency to apply for a loan for everything. Evaluate if you really require that loan or the same can be raised from other sources. Financial sound profile is most preferred by the lenders.
Right communication – Miscommunication always leads to mistakes that are not intentional. If you see an error in your personal account or credit card records, communicate with the lender immediately and make sure it is rectified. This will save your credit score to a large extent.
Appropriate borrowing – A healthy mix of secured and unsecured loan is always recommended. A marginal incline towards a home loan (secured loan) could be beneficial.
Buying a home is one of the most important decision in life, and one should look for good options when it comes to applying for a home loan. One should evaluate the home Loan interest rates offered by non-banking institution such Bajaj Finserv that is currently offering rate of 8.85%