Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Personal Use Loan > Do I Need a Good Credit Score for a Home Improvement Loan?

Personal Use Loan

Do I Need a Good Credit Score for a Home Improvement Loan?

Do I Need a Good Credit Score for a Home Improvement Loan?

A home improvement loan can help you cover all the renovation related expenses without digging into your savings. However, a lender will diligently check your credit score before approving your loan.

Yes, you do need a good credit score for home improvement loan. Why? Let’s explore in detail.

How your credit score affects your home improvement loan eligibility

A home renovation loan is essentially an unsecured personal loan. So, you can apply without pledging any collateral. Still, financial institutions have to evaluate your repayment capacity before lending out any funds.

That’s why they check your eligibility based on various factors including, age, work experience, monthly income, nature of employment, credit score, etc. Your credit score, being one of the most important criteria, reflects your creditworthiness.

Credit bureaus like CIBIL, CRISIL or Experian calculate this score considering your existing debt, past payment behaviour, credit mix, length of credit history, etc. It is a three-digit number that ranges from 300-900. And no matter what type of loan you want, lenders consider a CIBIL score of 750 or above as the ideal benchmark.

Additional Read: 5 Habits to Have to Get yourself in the above 800 Credit Score Club

What is a good credit score?

A CIBIL score typically falls under four categories: bad (or poor), average, good and excellent.

Poor300-549
Average550-649
Good650-749
Excellent750-900

As a loan borrower, therefore, you ought to keep a tab on your credit score. To maintain a healthy CIBIL score, you shouldn’t miss any scheduled monthly instalments and avoid delaying credit card bill payments.

When you default on your scheduled monthly payments, your credit score ends up taking a dip. That’s why it’s always prudent to use a personal loan EMI calculator to plan your tenure and opt for the EMIs you can afford.

The importance of a good credit score

If you have a good credit score, you can get the following benefits on your home improvement loan:

  • Enhanced loan eligibility: A good credit score boosts your personal loan eligibility as it shows a positive debt history. Therefore, a lender is highly likely to approve your loan.
  • Lower interest rate: With a favourable CIBIL score, your lender may even offer the home renovation loan at better terms. You can enjoy lower rates of interest and additional facilities as well.
  • Quicker approvals: Another advantage is reduced waiting time for loan approvals. Your lender will approve your loan application quickly when you have a high credit score.

Additional Read: Do Credit Scores Affect Your Home Loans?

Over to you

Thinking of renovating your house? Shortage of funds delaying your project? Worry no more! Avail of a personal loan for home renovation from Tata Capital and give your home the perfect makeover.

With affordable personal loan interest rates starting at just 10.99%, you can receive an amount of up to Rs. 25,00,000 with ease. You can use these funds to enhance your living space for years to come without any collateral/security.

So, whether you want to make repairs, expand your space, or build a new room, our customised offerings can ease your financial burden. Learn more here.

Apply Now

Get an Instant Personal Loan for all your needs !

Apply now
Popular Searches
loan without cibil personal loan for 15000 salary Loan for ring small cash loan on aadhar card pre approved personal loan What To Buy On Dhanteras Personal loan when self employed how to increase cibil score form 15g for pf withdrawal how to download aadhar card
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.