{"id":24055,"date":"2021-12-24T06:38:29","date_gmt":"2021-12-24T06:38:29","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=24055"},"modified":"2023-05-16T12:51:19","modified_gmt":"2023-05-16T12:51:19","slug":"importance-of-your-credit-score-for-home-loan-post-covid-19","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/whats-trending\/importance-of-your-credit-score-for-home-loan-post-covid-19\/","title":{"rendered":"Importance of Your Credit Score for Home Loan Post COVID-19"},"content":{"rendered":"\n

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Credit or CIBIL scores are crucial in deciding whether or not you get a loan as a potential home buyer. And with good reason. Since buying a house requires large sums of money, lenders want to be assured of your creditworthiness before lending you funds. Naturally, they are more likely to offer loans to a borrower who will repay their loan on time, in other words, someone with a good repayment history and credit profile.<\/p>\n\n\n\n

For lenders, the credit score is the numerical reflection of the same. And lenders are paying even more attention to it during these times. Here\u2019s why.<\/p>\n\n\n\n

The impact of COVID-19 on the home loan market<\/strong><\/h2>\n\n\n\n

On the one hand, the pandemic disrupted the cashflows of millions of people around the country. And more people are now relying on loans to make ends meet. Naturally, their credit or CIBIL scores have taken a hit.<\/p>\n\n\n\n

On the other hand, since people are spending more time in their homes, many are looking to upgrade their space. At the same time, thanks to the RBI policy changes, home loan<\/a> rates have witnessed steep cuts, and there have been relaxations in the stamp duty charges as well. All of these factors have made it the perfect time to invest in a home.<\/p>\n\n\n\n

Additional Read –<\/strong> <\/strong>Do\u2019s and Don\u2019ts to Improve Your Credit Score<\/a><\/p>\n\n\n\n

How lenders are coping<\/strong><\/h2>\n\n\n\n

Simply put, the pandemic impacted the finances of the borrowers in the current home loan market in varying ways. So, lenders are now segregating riskier borrowers through a credit score check<\/a> and offering them loans on higher interest rates.<\/p>\n\n\n\n

For instance, you are less likely to land competitive interest rates on your loan with CIBIL scores between 700-750 than borrowers with a credit rating between 750-800.<\/p>\n\n\n\n

By now, it\u2019s pretty evident that the importance of credit score in the home loan segment has increased recently. Are you a prospective homebuyer struggling with keeping your CIBIL score in check? Here are some tips to help you out.<\/p>\n\n\n\n

Tips to increase your CIBIL score<\/strong><\/h2>\n\n\n\n