If you have tried to get a home loan lately then you must know how hard it has become to get one these days. Gone are the times when there was minimum paperwork, and negligible red tape. Today you need to jump a number of hurdles to get the smallest home loan, and the toughest of them all is the CIBIL score. Without a decent CIBIL score it is almost impossible to get a home loan. While there are ways to improve your CIBIL score they often consume a lot of time, and are not simple. However, there are some tricks that could help you in getting your home loan approved by the bank.
In cases that involve CIBIL dispute or loan defaulting improving the credit score is little helpful. Thus, one needs to find other ways to get a loan. Here are some of the ways through which you can get your home loan approved despite a low CIBIL score-
1) Settle for a Collateral Loan- In cases of bad credit home loans people often opt for a collateral loan. If you have FDs in a bank, or own shares of considerable amount then you can easily get a collateral loan for your desired home. In most cases the loan provider is not really concerned about your low CIBIL score or credit score.
2) Turn to Your Spouse- If you have your name on CIBIL defaulter list or have a really low CIBIL score then you can always check your spouse’s CIBIL score. If their score is good then you can either take a home loan with their name, or have them take a joint loan with you. This is also one of the best ways to get a home loan when you are on a loan defaulter list.
3) Find A Company That Offers Loans for Bad Credit Score- Where there is a will, there is a way. Even if you have a terrible credit score there is still hope for you. There are some companies that are willing to offer home loans, albeit at a higher interest rates. In most cases the interest rates are so high that you would downright reject the idea of going for one However, when you have no other choice then it is the best way to go about getting a home loan. Besides, it could actually help you improving your credit score which can be helpful in future.
4) Find a Family Bank- Many people in India don’t know about family banks, which are a unique kind of banks that are run by families in different areas. In most cases the members of a family bank as well as its customers belong to the family itself. If you happen to know someone who has an account in such bank you can ask them to get a loan for you. If the member can convince the other members of the bank they can sanction you a loan easily.
5) Backup Your Application with Steady Income- If you have a steady stream of high income then you can use it to get leverage when applying for a home loan. You can show your monthly account statements to your bank and try to convince them with the same. If you are associated with the bank for a long time and have healthy relationship with it then with some effort you can get them to sanction a home loan to you.
To have a home of your own is certainly a great feeling, and when your CIBIL score comes in the way of getting a home loan you cannot feel worse. However, there are many other ways you can get your loan sanctioned, some of which are mentioned above. However, if everything fails then you can always take help from your friends or family. Still, no matter what you do make sure that you have a healthy CIBIL score. Try to make all efforts possible, because it will certainly help you in the long run.