How does credit score affect my loan against property eligibility?

Your credit score plays an important role in deciding your terms for a loan against property eligibility. Financial institutions check your CIBIL to assess your repayment track record and creditworthiness.

If you have a credit score of 750* or above, you are likely to get faster approval on your loan against property application on attractive terms. Those with credit scores between 700*-750* may get approved but with higher interest rates or lower LTV ratios.

However, if your credit score is below 700*, it can be challenging to get a loan approval as you may be deemed a high-credit-risk applicant. However, some financial institutions provide loan but with a higher interest rate. Having past payment defaults or delays, too many credit inquiries, and high revolving credit utilisation also negatively impact your credit score.

Ensure you maintain a high credit score well in advance of your loan application. This will help you get approved faster on better terms. You may also opt for a co-applicant with a better credit score to improve your chances of a loan against property approval.