If you are seeking a Home Loan in Pune and have a low credit score, do not be completely disheartened. While it is a fact that a credit score of 750 or above is considered good enough by financial institutions for sanctioning Home Loans, there are sometimes ways to get a Home Loan with a low credit score in Pune.
You should always check eligibility when you apply online for Home Loan in Pune. The eligibility criteria vary from one financial institution to another. General eligibility criteria for Home Loans are listed below which are followed by most of the lenders:e loans:
- Indian Resident
- Age between 25-58 years
- Salaried professional with 3 years of work experience (minimum)
- Minimum loan amount of Rs.30 lakh and maximum loan amount of Rs.10 crore
The minimum salary required for obtaining a Home Loan in Pune is Rs.45,000 where minimum property value is Rs.30 lakh. The documents required for Home Loan are the following:
- Application Form
- ID Proof- Driving License/Voter ID/Aadhar Card/Job Card from NREGA/PAN Card
- Address Proof- Voter ID/Aadhar Card/Passport/Driving License
- Form 16/Latest Salary Slips
- Bank Account Statements for last 6 months
Coming back to the major aspect, i.e. a low credit score, a person with a low credit score may sometimes get a Home Loan but at higher interest rates. He/she may also get only 60-65% of the property value as compared to 75-90% of the property value that buyers with good credit scores are eligible to get.
If the credit score is low due to any default on your loans/payments, then your chances of securing a Home Loan are lower. However, if the score remains low because of the absence of an extended credit history or lower amount of loan taken, then one may still be able to fulfill the eligibility criteria for a Home Loan.
In case you possess an asset, then you can mortgage the same to obtain a Home Loan. You can use assets like another property or gold as collateral for getting a Home Loan sanctioned. You can get a Home Loan in spite of a low credit score if you add a guarantor in some cases. The guarantor has to be financially sound though. The focus should be on improving your credit score by clearing out your debts in a timely manner, paying off your credit card/loan dues which are pending and also through checking your credit report and correcting any inconsistencies.