A Home Loan is the best solution to own your dream house. It is a secured loan where you keep your new home as collateral with the bank or NBFC to get the loan approval. The tenor of the loan is much longer ranging from 20 to 30 years, so must try to keep your EMI lower. The rate of interest is the major factor that increases or decreases your EMI. To make your loan affordable, try to get a lower interest rate.
CIBIL score is one of the major factor that determines your Home Loan Interest. A credit score or CIBIL score is a three digit number ranging from 300 to 900. It is generated on the basis of the credit history information. A credit score reflects your creditworthiness, your repayment habits and borrowing habits. The higher the score, the better it is. It will be better to have a score of above 750 before applying for a loan. More than 80% of the Indian Home Loan applicants get a Home Loan approval if they have a CIBIL score of 800 and more.
- You should always pay your outstanding amount by the due date, because missing the due date of your multiple debts will leave a negative impact on your credit score.
- You should not use the full limit of your credit card. Try to use below 50% of the available limit on your credit card, so that, it does not affect your credit card.
- You should not ask for increasing your credit card limit frequently.
To know the other factors, read: