According to Credit Information Bureau India Ltd. ( CIBIL), the demand for home loans in the country has surged by 18 percent in the first quarter of this fiscal. Data collected by CIBIL shows that there has been a rise in home loan enquiries by about 18 percent in the Q1 of current fiscal as compared to Q1 of the last fiscal.
CIBIL Home Loan Trends further suggests that home loans of higher amounts are being sanctioned all across the country. It further indicates that about 48 percent of home loans disbursed in metros in the year 2011 were of amounts exceeding Rs.20 lakh. In the same year, about 24 percent of home loan disbursals in cities such as Jaipur, Pune, Kanpur, Ahmedabad, Lucknow, Chandigarh were of amounts exceeding Rs. 20 lakh.
According to CIBIL, about 88 percent of home loan borrowers were those who were having a with a credit score of 750 and above. It should be noted that the higher the credit score, the more chances of getting home loans approved. Higher a credit score between 300 to 900 the better it is for the borrowers.
Nowadays, banks and financial institutions have started referring to a person's credit score before approving loans.