Aug 01, 2023

CIBIL Score for Home Loan | Credit Score Minimum Eligibility

by Godrej Properties Limited



What is a CIBIL Score for Home Loan

A CIBIL Score for a home loan is a numerical marker of an individual's creditworthiness while buying a property. The score is based on an individual's credit history, including credit cards, loans, and repayment behaviour. When applying for a home loan, CIBIL Score is crucial in evaluating the borrower's credit risk. A higher CIBIL score indicates a more reliable borrower with a strong credit history and responsible repayment behaviour. A good CIBIL Score for a home loan enhances the chances of approval and may lead to more favourable interest rates and loan terms.

Range of CIBIL Score for Home Loan and Its Meaning

CIBIL Score may range from 300 to 900. Here is what different credit scores mean:

  • 300 - 549 indicates a poor credit history, with a higher risk of defaulting on loans.
  • 550 - 649 suggests a moderate credit history, and lenders may consider such borrowers for credit, albeit with some caution. However, crossing the mark of 550 CIBIL Score for home loans can be viewed by some banks and financial institutions.
  • 650 - 749 is a good CIBIL Score that reflects a good credit history. If you are buying a home, then it is considered the best CIBIL Score for a home loan. 
  • 750 - 900 is an excellent CIBIL Score, indicating a solid credit history with a lower risk of default.

How Much Cibil Score Is Required For A Home Loan

The minimum CIBIL Score required for a home loan may vary from lender to lender. For instance, the minimum CIBIL score for a home loan in SBI may differ from the required minimum CIBIL Score for a home loan in some other banks. Most lenders prefer borrowers to have a CIBIL Score of at least 650 to 750 for home loan approval.

Benefits of CIBIL Score for Home Loan

The CIBIL Score, or credit score for home loans, plays a crucial role and offers several benefits, including:

  • A good CIBIL Score increases the likelihood of credit approval from various financial institutions for loans.
  • A higher CIBIL Score allows borrowers to get loans and credit cards at more favourable interest rates.
  • A high CIBIL Score may result in higher credit limits on credit cards.
  • A high credit score increases the chances of qualifying for various types of loans, such as home, car, and personal loans.

Tips to Improve CIBIL Score

Improving your CIBIL score requires consistent and responsible financial behaviour. Here are some practical tips to help boost your credit score:

  1. Ensure timely payment of credit card bills, loan EMIs, and other dues to indicate good repayment behaviour.
  2. Use only a tiny portion of your available credit limit to keep credit utilisation low, ideally below 30%.
  3. Avoid multiple credit applications, as numerous inquiries can negatively impact your score.
  4. Clear any outstanding dues or collections.
  5. Keep track of your credit report regularly for errors or discrepancies.


It is important to note that while the CIBIL score is a significant factor, lenders also consider other aspects, such as the borrower's income, employment history, existing debts, and the down payment amount. A good CIBIL Score is required for home loans, so individuals must maintain their credit score for home loan eligibility.

Frequently Asked Questions

  • What is the minimum CIBIL Score for a home loan?

Answer: 650 is the minimum CIBIL Score required to get a home loan approved. 

  • How to check CIBIL Score?

Answer: You can log on to the official CIBIL website, furnish details such as full name, date of birth, address, id proof, etc. and then, after following further prompts, you can see your score.

  • Is 777 a good CIBIL Score for a home loan?

Answer: A score between 650 - 749 is acceptable for a home loan.

  • Can I get a home loan with CIBIL 680?

Answer: Yes. You may get a home loan with a CIBIL score of 680. However, do check with your loan provider to get a better idea.

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