Home loan is one of the low cost loans available from Top banks to Indian Citizens.  In counties like India where middle income group population is big, home loans comes as boom to people who like to have their own piece of accommodation. Even when someone has money it is not a wise decision to put his entire money and purchase house. Home loans are available with fixed and floating interest rates and one can avail the same at the convenience of their financial position. There are few things that everyone should think of before planning to proceed with Home Loan to buy Residential Apartment.

The main point that banks look for before processing the papers is the CIBIL Score. CIBIL Score is nothing but the report that can be possessed from Credit Information Bureau (India) Limited, this is also called as CIR, Credit Information Report.  This report is must nowadays to get any type of loan be it Educational Loan, Business Loan, Home Loan or Personal Loan.  CIR or CIBIL Score shall tell any individual’s credit repayment history, all micro finances, credit card companies, corporate finances that fall in purview of RBI..  This authority collects and maintains all loan related information intact so that bad debts are getting reduced considerably. When granting huge amounts like home loans, CIBIL is a vital part that Banks will look into.  The CIBIL scores starts at 300 and goes up to 900 points for evaluation. If the CIBIL score is not at a good level chances of rejection of home loan is more. Even if there is one late payment or overdue the score starts getting affected.

The report from CIBIL does not have any specific validity. The bureau updates the information on the databases every day and hour. The updated credit report shall be obtained without any delay through online sources itself.  CIBIL score over 750 is good enough to get a housing loan from reputed bank.  Even after applying the loan and before the bank check the credibility if some bad debts are there then Bank has every right to reject the loan and the processing fee will get wasted.  For self employed people CIBIL score is most important document to obtain home loan.  Score of 350 to 700 is considered as average.  People with CIBIL in this range can improve the same by getting easily available credit cards and emi cards. On improving the score different banks can be approached for loan processing again.