Yes, it is true that your credit or CIBIL score can help to improve your financial capability helping you avail funds when you need them the most. This can be in the form of say Home Loan, to help you finance your dream house.
As a borrower you must take note that lenders usually offer up to 60-70% of the property value as loan. The remaining 30-40% of the amount consists of down payment and other processing fees which are to be pocketed by you.
Having a healthy credit score will help you acquire the maximum loan amount from the lender. Here’s how.
Instant Approval and Disbursal
Lenders run a background check on borrowers creditworthiness. Based on which they can take decisions of what loan amount and at what interest rate to be provided to the borrower. A healthy credit score of 750+ or more will help to win the trust of your lender and in turn receive instant approval and disbursal.
Lenders are willing to offer negotiated loan to borrowers with good CIBIL score. Thus, you can pitch your requirement and ask for lower interest rate at flexible loan tenure.
However, if you have a bad or poor credit score you can always take steps to improve it in the long run. These include paying off unmet loan repayments either partially or in full, clearing credit card outstanding and settling other bills. Though, the process will take time but it will improve your score overtime.