Buying your own house is a dream of many. But most of us can’t afford to fulfill the dream with his savings and annual income. So, what to do? Just take a home loan and fulfill your dream.

To get home loan, the most important criteria is to have a good credit/cibil score. But if you are someone who fails to pay their existing loan EMI or credit card bills on time, you will be labeled as CIBIL defaulter with very low credit score. It becomes very difficult for a CIBIL defaulter to get a home loan. Banks consider a CIBIL defaulter as high risk and is hesitant to give them a home loan. Though it is difficult for CIBIL defaulter to get a home loan, he/she will be charged a higher interest rate against the home loan.

Home Loan for CIBIL defaulters

If you are a CIBIL defaulter, then it becomes quite difficult to get a home loan. So, you need to improve your credit score first.

Here are some important steps that CIBIL defaulters must follow in order to get home loan-

• You need to pay all your remaining dues of loan EMI or credit card bills. This will increase your credit score will help you to get a home loan.
• After you have cleared your loan repayment, you need to obtain a NOC or No Objection Certificate from the bank which will help you to get  loan.
• Banks will charge a higher rate of interest for the CIBIL defaulter against home loan.
• A CIBIL defaulter will be eligible to apply for home loan if he earns a high income. Individuals with a higher salary are considered to have high repayment capability.
• It becomes quite difficult for CIBIL defaulters to get a home loan. So. He can include his spouse who has a good credit score as co-applicant for home loan.

Points to consider when a CIBIL defaulter apply for home loan

Here are some important points to consider when a CIBIL defaulter apply for home loan-

• When a CIBIL defaulter pays the home loan EMI on time, he will be able to increase his credit score.
• A CIBIL defaulter needs to pay a higher interest rate on home loan.
• When a CIBIL defaulter applies for loan, he must keep in mind will need to pay  fees and other charges that are associated with the loan.
• Before applying for a loan, you must check your credit score.
• There should be no discrepancy in your credit score. Your credit score must be up to date with your credit history.
• Though many banks might reject a CIBIL defaulter for loan,   some lending institutions which provides loan to CIBIL defaulters and charge a high interest rate.