Home loan eligibility

POSTED BY Neeraj Kumar Darda ON May 14, 2013 1:59 pm COMMENTS (6)

I had 1 personal loan and 1 Credit card converted loan.
I settled the personal loan by paying the principal amount in 2011.
I paid full amount of Credit card converted loan in Feb 2013.
Now I waited for a month and just check the approval process, I applied for SBI credit card, and fortunately it got approved.
I am using the credit card and repaying the dues since last 2 months.
My Cibil Score is 740 without any details abt this Credit Card.
I hope this will improve my Cibil ratings.
My question is, I want to apply for a Home Loan, can u pleas advise me further to avoid any loan rejection in August???

6 replies on this article “Home loan eligibility”

  1. Dear Neeraj, are you an existing customer of SBI? If yes, the old relationship ‘ll work as a positive for you. Please do not worry too much for the score as of now. You can explain your situation at the time of applying for your home loan.



    1. Neeraj Kumar Darda says:

      Hi Ashal, I didnt have any SBI account however just now I got the credit card.
      However as you mentioned that I can explain the situation, it means that I would have some flexibility while getting the loan approval.
      I will try with few banks just through discussion first.

      Thank you so much for your assurance.

  2. Dear Neeraj, please go ahead with your proposed home loan, if possible to you, please delay a bit say till december so that more data can come in from the new SBI card. It ‘ll help to improve your score.



  3. Credexpert says:

    Dear Darda,

    Lending institutions usually update borrower’s payment history to the credit bureau on a monthly or quarterly basis, depending on their reporting cycle. We would request you to obtain your credit report after 1 month assuming that this account would appear on your report by then. If this account data still does not show on your credit report then, request the lender to report this to the credit bureaus.

    740 is a decent score, but the settlement could hinder your application process. The final discretion in all ways would depend on the lending institution’s credit policy. Continue making timely repayments across all your accounts and do not apply for any new credit facility to minimize any possibilities of a rejection.


    1. Neeraj Kumar Darda says:


      Credexpert and Ashal,
      Thank you so much for your valuable time. I was hoping that the SBI Credit card will help in improving my CIBIL Score and hence I was planning to keep it using properly till next few months however I got a good offer recently which I have booked, and I have to pay the first installment in August.
      I was worried if my loan request will be approved or not?
      Moreover I was wondering if the Credit Card application was approved, should I be positive about the home loan approval as well??
      OR is there any different criteria of the Banks to approve the home loan???

      Thank you so much for the suggestions.

      1. Credexpert says:

        Dear Mr. Darda,

        Unsecured loans are riskier in comparison to secured loans and hence lending institutions are more cautious in approving the same. Since your credit card application (unsecured) was recently approved, there “might” be possibilities of an approval of your Home loan (secured) as well. But as said earlier the final discretion in all ways would depend on the lending institution’s credit policy.


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