Yes, obtaining a house loan with 580 credit score is possible, particularly through specialised schemes like ICICI Home Finance’s Apna Ghar Dreamz. This initiative caters to individuals with low credit scores, offering accessible housing finance options. Such schemes to assist applicants with CIBIL scores of 650 or below. It is especially beneficial for those employed in the unorganised sector, cash salaried individuals, or self-employed persons lacking formal income documentation.
Home Loan with 580 Credit Score
Applicants can secure loans up to Rs. 20 lakhs with just Aadhaar and PAN cards. For loans up to Rs. 5 lakhs, a minimum account balance of Rs. 1,500 suffices; for amounts above Rs. 5 lakhs, Rs. 3,000 is needed. Loan approvals are typically completed within 3 to 5 business days.
Individuals from various professional backgrounds, including those without formal income proofs, are eligible. Interest rates may be slightly higher due to the associated credit risk. Standard home loan tax benefits under Sections 80C and 24(b) of the Income Tax Act are applicable.
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Banks use credit scores to determine the creditworthiness of a borrower. A credit score of 580 is considered average by banks, and it would be very hard for you to get a loan. So, if you are thinking, can I get a home loan with 580 credit score, then the chances are pretty slim. And by any chance, if you get a home loan the interest rate of the loan would be quite high.
How to Get a Home Loan with 580 Credit Score?
As I mentioned above, it would be very hard to get home loans with that credit score, and even if you get one, the interest rates would be sky-high. But you can improve your credit score by following a few methods. Some of those are,
Stop applying for multiple loans. Applying for multiple loans within a short time frame is generally taken as a sign of financial instability and results in a low credit score.
Credit cards are great for improving your credit score but you must ensure that the credit utilisation is below 30% of your available limit.
If you have loans, you need to ensure that you are repaying them on time.
There are quite a lot of other methods that you can follow to improve your credit score. I hope you find this helpful.
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Can I Get a Home Loan With 580 Credit Score?
Rajesh
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2024-12-31T16:27:19+00:00 2024-12-31T16:27:20+00:00Comment
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