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Home Loans are a crucial financial instrument as they help fulfil the dreams of many people. And to facilitate these loans, the Government has come up with a lot of schemes to subsidise the loans and give loans at lesser interest rates to the borrowers.

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But like every other loan type, there are fixed criteria for a borrower to be eligible for the loan. Like their age, CIBIL Score, Income, city, etc. These are some of the factors that lenders consider while giving away loans. Now, what can a person do if he has a low credit score? Because that is a problem and no lenders are willing to compromise with the low credit score of the borrowers. If the borrower’s income is a little less or anything, you could convince the lender, but a low credit score says something else.

A low credit score would come only when a person has delayed the repayment or defaulted on his loan. Both of which make the borrower look bad with the lender. A lender tries to make the pattern while giving away loans. A person with a good CIBIL Score has repaid his loans, and therefore may not default on his loan today. Still, a borrower who has failed to repay his loan in the past may find himself in the same situation and may delay in repayments again.

Therefore, a borrower needs to maintain a good credit score and repay their loans on time. Or their credit rating could be severely impacted, making them ineligible for getting loans in the future.

To get a Home Loan up to ₹1 Crore, a borrower must have a good credit score. But if you already have a low credit score, below are some tips of what options you have to get a 1 crore Home Loan:

  • Co-Borrower: If the borrower needs the loan instantly, the best way for him is to get a co-borrower who has a good credit history. Fixing a bad credit score is not an easy process because a credit score is built over some time, and you cannot fix your credit history in a few days. So, if you want a loan instantly, the best way is to find a co-borrower for your loan which is willing to be a party to your debt. A co-Borrower is a person who becomes liable to the loan amount along with the main borrower. If the principal borrower frauds in the repayment of his loan, the co-borrower will automatically become liable for the loan.
  • Build credit to fix credit: It is the simplest and the most legit process to fix a bad credit score. But the only problem with this process is that it will take a lot of time to do this. This process simply means you need to find a borrower who may be willing to give away loans to you and then repay the loan on time, which will eventually improve your credit ratings. This process is the most legitimate way to better your credit score. Because Credit rating agencies simply look at the borrower’s loans and repayments and whether or not they were made on time. So, although this process is a long one, it can help you fix your credit score for good.
  • Experian: When you cannot use any of the aforementioned ways, you can use firms like Experian. These firms work through the technicality of your credit history and help you fix your credit history very fast. But only to a certain possible extent. And it varies from borrower to borrower. Experian searches your bank account data for utility, phone and cable payments, and you can choose which accounts to add to your credit file. Once the accounts are added, a new credit score is instantly generated. Those who have little or poor credit could see an increase in their CIBIL® Score thanks to the addition of a new positive payment history.

These are some of the basic methods that can help you get your Home Loan of 1 crore. The lender must make sure that the borrower is capable of repaying the loan amount. And a credit score helps the lender make that decision. So, maintaining a good credit score is important for the borrower. It not only defines his credit history but also helps the lender decide whether or not the borrower should be given the loan.

Also, once spoiled, it is extremely difficult for a person to fix their credit history because it is not made instantly. It is formed with the analysis of a lot of data from the past. So, a person should never take a loan that he thinks he may not repay on time.

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