Best NBFCs Offering Home Loans with Low CIBIL Score in India

Owning a home is a dream for many, but securing a home loan can be challenging, especially if you have a low CIBIL score. Most banks require a good credit score (typically above 750) for home loan approvals. However, several Non-Banking Financial Companies (NBFCs) in India provide home loans even to individuals with low credit scores. These NBFCs offer flexible terms, customized loan solutions, and relaxed eligibility criteria. In this article, we will explore the best NBFCs in India offering home loans for individuals with low CIBIL scores, their features, interest rates, eligibility criteria, and tips to improve your chances of approval.

1.

IndiaBulls Housing Finance

Features:

• Offers home loans to individuals with a CIBIL score as low as 600.
• Higher loan-to-value (LTV) ratio, up to 90% of the property value.
• Flexible repayment tenure of up to 30 years.
• Competitive interest rates with customized solutions.

Eligibility:

• Salaried and self-employed individuals are eligible.
• Minimum monthly income of Rs. 25,000.
• Loan amount based on income and property valuation.

Interest Rate:

• Starts from 9% per annum.

2.

Piramal Capital & Housing Finance

Features:

• Provides home loans for CIBIL scores as low as 550.
• Higher loan amounts depending on financial stability.
• Loan tenure up to 30 years.
• Quick loan disbursal process.

Eligibility:

• Salaried and self-employed individuals.
• Flexible income proof options for self-employed individuals.
• Minimum age: 21 years; Maximum age: 70 years at loan maturity.

Interest Rate:

• Starts from 10% per annum.

3. Aditya Birla Housing Finance

Features:

• Caters to borrowers with a low CIBIL score.
• Special consideration for individuals with irregular income.
• Loan amount up to Rs. 5 crore.
• Balance transfer facility available.

Eligibility:

• Salaried and self-employed professionals.
• Minimum income requirement depends on location and profile.
• CIBIL score as low as 600 is acceptable.

Interest Rate:

• Starts from 9.5% per annum.

4. Tata Capital Housing Finance

Features:

• Offers home loans to individuals with CIBIL scores as low as 550.
• Customizable loan products based on the borrower’s financial history.
• Digital loan application process with minimal documentation.
• Tenure up to 30 years.

Eligibility:

• Salaried and self-employed applicants.
• Must have a stable income source.
• Minimum loan amount: Rs. 5 lakh.

Interest Rate:

• Starts from 9.75% per annum.

5. PNB Housing Finance

Features:

• Offers home loans to applicants with low CIBIL scores (600 and above).
• Higher LTV ratio up to 85%.
• Multiple repayment options to ease financial burden.
• Loan amount up to Rs. 10 crore for high-income borrowers.

Eligibility:

• Salaried and self-employed professionals with stable earnings.
• Age: 21-70 years.
• CIBIL score of 600 and above preferred.

Interest Rate:

• Starts from 9.6% per annum.

6. IIFL Home Loans

Features:

• Loans available for individuals with CIBIL scores as low as 550.
• Special schemes for first-time homebuyers.
• Loan amount up to Rs. 35 lakh.
• Quick loan approval process.

Eligibility:

• Salaried and self-employed individuals.
• Minimum income requirement varies.
• Loan repayment capacity based on earnings.

Interest Rate:

• Starts from 10.5% per annum.

7. LIC Housing Finance

Features:

• Home loans available for low CIBIL score holders with additional guarantees.
• Long tenure options up to 30 years.
• Lower processing fees compared to banks.
• Facility to add a co-applicant to improve loan eligibility.

Eligibility:

• Minimum age: 18 years.
• CIBIL score of at least 550-600 required.
• Salaried and self-employed individuals can apply.

Interest Rate:

• Starts from 8.85% per annum.

Tips to Improve Home Loan Approval Chances with Low CIBIL Score

If you have a low CIBIL score and want to enhance your chances of securing a home loan, consider the following tips:

1. Apply with a Co-Applicant: Adding a co-applicant with a strong credit score improves your loan approval chances.
2. Provide Collateral or Higher Down Payment: Offering additional security or making a higher down payment reduces risk for lenders.
3. Opt for NBFCs over Banks: NBFCs have more flexible lending criteria compared to traditional banks.
4. Showcase Stable Income: Provide proof of stable employment or business income to assure lenders of your repayment capability.
5. Clear Existing Debts: Paying off existing loans and reducing credit card dues can improve your creditworthiness.
6. Negotiate with the Lender: If you have a lower score due to past financial issues, explain your situation to the lender and negotiate better terms.
7. Use a Guarantor: A guarantor with a good credit score can strengthen your loan application.

Conclusion

Getting a home loan with a low CIBIL score in India is challenging, but NBFCs provide a viable solution with flexible terms. IndiaBulls Housing Finance, Piramal Capital, Aditya Birla Housing Finance, Tata Capital, PNB Housing Finance, IIFL Home Loans, and LIC Housing Finance are among the best NBFCs catering to individuals with poor credit scores. While interest rates may be slightly higher, these lenders provide customized solutions to help you achieve your dream of owning a home. Before applying, compare loan offerings, interest rates, and terms to choose the best NBFC that suits your financial situation. Additionally, work on improving your credit score for better loan terms in the future.