Your credit score plays a vital role in the loan screening process. It is among the first things that lenders use to gauge your credit eligibility. A score of 700 and above is most preferred by financial institutions. Such scores also put you in an excellent position to negotiate the best terms on your loan.
But what if your score is below the desired limit? Thankfully, Housing Finance Companies like PNB Housing offer home loans to individuals with low scores who find it difficult to borrow from banks. Here’s how!
- How to Get PNB Housing Loan with a Low Credit Score
- Provide Proof of Adequate Income
- Apply for a Lower Amount
- Find a Co-Applicant
- Propose a Higher Down Payment
- No History is Better than Bad History
- Review and Improve Your CIBIL Score
- Pay Bills on Time
- Limit Hard Inquiries
- Correct Mistake in Your Credit Report
- Choose Comfortable Repayment Tenures
- Get Your Loan Sanctioned From PNB Housing Finance
How to Get PNB Housing Loan with a Low Credit Score
Lenders place immense importance on credit scores because it helps them understand the risk associated with sanctioning your loan. So obtaining a loan with a credit score lower than 650 can be challenging for individuals.
Here are some measures to increase the chances of PNB Housing Loan approval with a low score.
Provide Proof of Adequate Income
Proof of high and stable income may re-ignite your lender’s interest in your application despite your low score. This includes employment in a reputed private organization, a recent salary hike, a bonus, or an additional source of income.
The idea is to give lenders confidence in your repayment capacity.
Apply for a Lower Amount
Sanctioning a high loan amount with a low credit score is a huge risk for any bank. So consider applying for a relatively lower loan amount. A loan application for a lower amount along with adequate income proof may tilt lenders more on your side.
Find a Co-Applicant
Finding a close relative or acquaintance with good credit history to co-sign your application will significantly increase your chance of getting a PNB Housing Loan. This is because a co-applicant ready to share the obligation reduces the risk for lenders.
Further, it will also help you negotiate a better deal.
Propose a Higher Down Payment
By proposing a higher down payment, you may come across as a trustworthy applicant capable of repaying your loan. Higher down payment will also reduce your EMI, making for a more comfortable repayment.
The most preferred source for a down payment would be your savings. It will help you compensate for a low credit score.
No History is Better than Bad History
If you’re new to borrowing with no credit history, you may still get a PNB Housing loan at a premium. If you can convince your lender of your repayment capacity, you have a better chance of getting approved with no history than with a lousy record.
Review and Improve Your CIBIL Score
Before getting into significant financial commitments like home loans, it is always advisable to plan early. This way, you’ll have enough time to review your score and take corrective actions if required.
Once your report looks better, you will be better positioned to apply for the loan amount you desire. Here are some steps to improve your CIBIL score over time:
Pay Bills on Time
Defaulting on bill payments is a major factor that negatively affects your credit report. Make sure to pay all your bills on time. Avoid defaulting on loan dues, credit card bills, phone bills, etc.
Limit Hard Inquiries
Refrain from making multiple hard inquiries as they reflect on your credit report and show you in a bad light. If your loan application gets rejected, wait for some time before you make another application.
Correct Mistake in Your Credit Report
A lower CIBIL score may also result from mistakes and errors in your report. So make a habit of checking your report regularly and correcting errors as and when they occur. You do not want to suffer for no fault of yours.
Choose Comfortable Repayment Tenures
Choose comfortable repayment tenure for your outstanding loans to avoid defaulting and further deteriorating your credit report. Paying EMIs on time will gradually improve your credit score and strengthen your position as a trustworthy borrower.
Get Your Loan Sanctioned From PNB Housing Finance
So if you’re worried about your low scores, you can try one or all of the above methods to get a PNB home loan. PNB Housing Finance review has excellent ratings for its quick and efficient service. With relaxed CIBIL score criteria, PNB could be an ideal choice to help you fulfill your dream of owning a home.
PNB Housing Finance has been a part of the Sanctioned Loan Process from the beginning. We work hard to provide the best rates and closing experience for our customers, who deserve a no-hassle process.If you’re really looking for a loan and are interested in one from PNB Finance is reliable place for you, we recommend that you follow all those tips.