Can I get a private mortgage with a low CIBIL rating?

I’ve a CIBIL rating of 690 and I work as a mid-level gross sales govt with a high pharma firm, having a CTC of ₹6.5 lakh each year. I need to avail a private mortgage of ₹3 lakh. I’ve bank cards from HDFC Bank and Axis Bank with common fee historical past. But I’ve by no means availed any loans up to now. What are the probabilities of my mortgage approval?

-Name withheld on request

Your CIBIL rating appears too low contemplating your common compensation historical past. So, I might first counsel you to examine your credit score report and look out for any errors or improper info that could be flattening your credit score rating.

For most banks and main NBFCs, a CIBIL rating of 690 can be on the decrease facet of their consolation stage. Banks and enormous NBFCs often want lending to people having a credit score rating of 750 and above. As private loans are unsecured loans, lenders place larger emphasis on credit score rating whereas evaluating private mortgage candidates than others. Although some NBFCs and fintech lenders approve private loans to these having credit score scores of lower than 700, their rates of interest are often on the upper facet.

Lenders additionally think about different elements throughout the analysis course of, together with an applicant’s occupation profile, EMI/NMI ratio, employer’s profile and age. EMI/NMI ratio refers back to the proportion of your internet month-to-month revenue spent on servicing your EMI(s), together with the EMI of your new mortgage. Thus, your occupation profile, employer’s profile and your zero EMI obligation may match in your favour.

I might additionally counsel you to examine mortgage choices towards bank card gives, if any, obtainable out of your current card issuer. Credit card loans are pre-approved loans provided to current bank card holders having a very good credit score profile and clear compensation historical past. These loans have prompt disbursal and are nearly much like private loans when it comes to product options.

Then, examine with the financial institution(s), with whom you keep financial savings account(s) or mounted deposits, on the supply of non-public loans. Many banks provide loans at preferential rates of interest to their current account holders.

Finally, go to an internet monetary market to match private mortgage gives obtainable with different lenders. Such marketplaces mean you can examine mortgage gives from a number of lenders, together with the smaller NBFC and fintech lenders, with out adversely impacting your credit score rating.

Once you’ve gotten all of the choices obtainable, consider them and go for the credit score choice and provide with lowest rate of interest, for mortgage tenure and disbursal TAT that fits you.

Query answered by Naveen Kukreja, CEO& co-founder of Paisabazaar.com. Queries and views at mintmoney@livemint.com

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