CIBIL Score Range: What Do the Numbers Mean?

TransUnion CIBIL is a credit information company that collects data on credit users and aggregates information regarding consumers and their borrowing and repayment patterns and history. TransUnion CIBIL entered the Indian market in 2000 and is one of the four credit information companies authorized by the Reserve Bank of India to study consumer borrowing patterns. Today, TransUnion CIBIL holds records on close to 600 million individuals and approximately 32 million businesses and is one of the most trusted credit information agencies in the country. 

Most lenders, when they receive an application for credit or a loan, choose to work with TransUnion CIBIL to assess the creditworthiness and repayment capacity of the loan applicant. TransUnion CIBIL helps credit companies and lenders through CIBIL scores. The CIBIL score is a three-digit number that reflects the repayment capacity of the loan borrower and their ability to handle debt. In this article, we talk about CIBIL score range and what they mean for home loan approval. 

CIBIL Score Ranges: What is the Minimum CIBIL for Home Loans? 

The minimum CIBIL for home loans is 700. If your CIBIL score is below 700, getting approved for a home loan would be difficult. Let us walk the readers of this article through different CIBIL score ranges and what they mean for home loan approval. 

750 to 900 (Very Good/Excellent): A CIBIL score between 750 and 900 is considered good or excellent. People who pay their loan EMIs and credit card bills on time and without defaulting, are not excessively dependent on credit, have a mix of secured and unsecured loans and have a CIBIL score in this range. People with CIBIL scores in this range get approved for a loan quickly, have high negotiating power and can ask for high loan amounts, low interest rates, long repayment tenor and low processing charges. 

700 to 749 (Good): A CIBIL Score in this range is considered the mark of a credit user who can be more or less trusted with timely repayment of loan EMIs and credit card bills. These people fall short of the ideal CIBIL for home loan due to some minor mistakes made in the past, such as missing loan or credit card bill payments, having an excessively high credit utilization ratio, etc. People with a good CIBIL score are able to access credit easily but not on the most beneficial loan terms and conditions. 

600 to 699 (Average): People with average CIBIL scores cannot be trusted with timely repayment of loan EMIs and credit card bills. Such a CIBIL score usually belongs to people who have made many credit-related mistakes in the past and are excessively dependent on debt. When people with a CIBIL score in this range apply for a home loan, loan approval does not come easily. However, an individual may be able to secure a loan with such a CIBIL score by adding a co-borrower with excellent creditworthiness and income or a loan guarantor who provides the risk cushion in this case. 

Below 599 (Low): If your CIBIL score is below 599, know that it will be quite impossible for you to get approved for a loan. In this case, the only option you have is to better your CIBIL rating first by practicing financial discipline. In other words, you will need to be smart about how you are using your credit cards and if you are repaying the amount due on your cards on time. You will need to pay all your loan EMIs and credit card bills on time. Apart, if you want to better your CIBIL rating and get access to credit easily, you will need to develop a mix of both secured and unsecured loans. Further, you will also need to refrain from applying for new credit cards and loans to avoid coming across as excessively dependent on credit. Finally, you will need to be excessively patient and give your efforts at least a few months to reap benefits. 

Final Words 

If you are planning to apply for a home loan or any other type of loan, you must do a CIBIL score calculation or check your CIBIL score using a PAN Card and advance with your application only if your CIBIL score is at least 750. With such a CIBIL score, you will be able to secure the best loan option for you.