Having a bad credit history is not a reason for rejection of home loans, but defaulters can face certain challenges if their credit score is low. However, there are several options for those who want to clear their accounts. One option is to settle the account out of court. This will involve the borrower paying the full amount owed, and the financial institution will withdraw the case and update the CIBIL if the settlement has been achieved. Another option is to take out a guarantor or co-applicant whose credit score is better than the borrower’s.
The first option is to make a personal loan with a high interest rate. This type of loan is not for those with poor credit, and should be used only for emergency needs. If you are looking for a home loan, you should know that your eligibility is more important than your credit score. The bank will base the loan amount on your income and net monthly obligations, your CIBIL score, and the property value.
The next option is to apply for an advance against property. If you are eligible, you can apply for a loan against your home. You should remember to check your CIBIL score first. This will allow you to determine whether you are eligible for such a loan. If your credit score is low, you should avoid applying for one. The process is simple and will be completely free. But if your credit score is high, you may find it hard to repay. You should consider all the options before making a decision.
