What is the minimum CIBIL score required for a home loan in India?

CIBIL or Credit Information Bureau (India) Limited is India’s premier credit rating bureau. It is also the most popular. The primary task of CIBIL is to keep track of the credit history of every Indian citizen with a history of borrowing through loans or credit cards. 

This article explains theΒ minimum CIBIL score for home loansΒ in India and ways to improve the score.

What is CIBIL Score, and Which Factors Affect the Score?

Like Equifax, Experian, and CRIF High MarkCIBIL, TransUnion Credit Information Bureau (India) Limited, popularly known as CIBIL, is a Reserve Bank of India authorised credit record-keeping agency. It is empowered to keep track of every Indian borrower’s credit history by assigning a score known as the CIBIL score. 

The CIBIL score typically ranges between 300 and 900.  

Every Indian citizen with a credit history can visit CIBIL’s official website to check their CIBIL score for free. However, if you want to track your CIBIL score multiple times a year, you have to pay a nominal fee. 

To track your CIBIL score, you need to visit CIBIL’s official website, fill out a form, and pay the requisite fee (if applicable). After filing and submitting the form, you have to wait for 24 hours, within which the credit report will be sent to the email ID you entered during the registration process.   

The credit score depends on a wide range of factors, including but not limited to the borrower’s payment history, loan or credit card dues, the length of the credit history, credit mix, etc. Sometimes, a borrower’s credit score might be low because of technical failures, such as when the lender delays reporting a payment. 

What is the Minimum CIBIL Score for Home Loan in India?

The minimum CIBIL score for home loans depends on the lender. While some lenders reject loan applications if any borrower’s credit score is below 750, other lenders approve the applications provided the other parameters, such as income, age, and property status, are in shape.  

Besides affecting the approval of a home loan, the CIBIL score also affects the current home loan interest rate. For instance, if your credit score is above 800, you can get a home loan at 6.75%. 

However, if your CIBIL score is below 650, the minimum interest rate starts from 8.75%. 

Why Should You Have a High CIBIL Score?

Having a high CIBIL score is imperative to have higher negotiating power. 

You can also shift between lenders if your score is high. Since lenders give deep discounts on the current home loan interest rate for borrowers with a high CIBIL score, you can save considerably by keeping your score high.Β 

A high CIBIL score also increases borrowers’ eligibility, and they become eligible to avail of a bigger loan amount. Also, a person with a high credit score gets loan approval quickly since the documentation process gets shortened. 

How Can You Increase Your CIBIL Score?

One of the top reasons the CIBIL score is low is that borrowers do not repay their loan EMI or credit card dues on time. Every time CIBIL records a default, it reduces the score. 

Hence, if you forget loan repayments often, it’s high time you should consider repaying them before the due dates. 

The Credit Usage Ratio (CUR) also affects the CIBIL score. For instance, if your credit limit is INR 1 lakh and you have already withdrawn INR 70,000, your CUR will be 70%. In such a case, your CIBIL score will grow slowly. 

In contrast, if your CUR is less than 40%, the credit score will get a rapid thrust.    


Increasing the credit score is paramount when getting the best rates on a home loan. Also, since the minimum CIBIL score for a home loan is flexible with most lenders, you can conveniently apply for a home loan and repay regularly to improve your CIBIL score. 

You Might Also Like