Home Loan with 650 Credit Score

A credit score of 650, is categorised as ‘fair’ and not the best as per the basic standards. It has specific implications for home loan prospects. While it meets the minimum requirements for various mortgage loans, it falls below the national average credit score, and as such, can lead to certain limitations in the home-buying process. A CIBIL score of 650 falls into a category where certain lenders, especially Non-Banking Financial Companies (NBFCs), may still consider you for a home loan. Institutions like ICICI HFC offer home loan options to individuals with CIBIL scores of 650 and below. They provide schemes like 'Apna Ghar Dreamz', which allows quick loan disbursal with minimal documentation, even for those with lower CIBIL scores.

Benefits of a 650 Credit Score in Terms of Home Loan

While a 650 credit score is generally considered fair and not high, it still offers some benefits when applying for a home loan, particularly in the context of India:

• Acceptable CIBIL Score: A CIBIL score of 650 is considered acceptable for home loans and meets the eligibility criteria for various lenders.
  
• Access to Specialised Loan Programs: Some financial institutions have tailored loan programs specifically for applicants with lower credit scores, facilitating loans with minimal documentation and quick disbursal.
  
• Scope for Improvement: Having a credit score of 650 offers potential for improvement. By managing finances better and making timely repayments, you can enhance your credit score and receive better loan offers in the future.

Best Home Loans with 650 Credit Score

With a CIBIL score of 650, you have several options for home loans in India, although they may come with certain conditions or higher interest rates compared to those offered to applicants with higher scores. The best home loan with a 650 credit score offered by several lenders include:

Apna Ghar Dreamz for Salaried: ICICI HFC

ICICI HFC provides home loans to individuals who have a CIBIL score of 650 or lower. The amount of the loan that can be disbursed is up to 20 Lakhs.

Bajaj Finserv

Bajaj Finserv NBFC is a feasible choice for financial borrowing for those with bad credit. They provide loans up to 15 crores at an interest rate of 8.50% or more. The payback period is up to 40 years, and a processing fee of up to 7% of the loan amount is applied.

Aditya Birla Capital

Aditya Birla Capital, a company recognised for its technological progress, offers home loan opportunities for individuals with lower credit ratings. Current Aditya Birla Capital clients can benefit from a fixed interest rate of 8.85% for loans exceeding 50 lakhs and an interest rate starting at 8.90% for loans below 50 lakhs. The loan period can extend up to 30 years.

What Does a 650 Credit Score Get You?

A 650 credit score allows you to apply for various loans but with differing terms. Here’s a quick rundown of the same.

• Home Loans: As already discussed, securing a home loan with a 650 credit score in India is possible. Different financial institutions offer home loans to applicants with a CIBIL score of 650 and below. However, the interest rates might be higher, and the terms might not be as favourable as those offered to applicants with higher credit scores.
• Personal Loans: You can qualify for personal loans with a credit score of 650, but the interest rates may be higher than those provided to people with higher credit scores. Lenders may consider you a moderate-risk borrower.
• Student Loans: For federal student loans in many countries, credit scores are not a factor, so a 650 credit score would not impact your eligibility. However, for private student loans, this score might result in higher interest rates.
  Small Business Loans: If you have a 650 credit score and want to establish or expand a business, you can apply for small business loans. The terms and interest rates will be determined by the lender’s rules and may be less favourable than those offered to applicants with better scores.