5 Steps to Maximize Your Home Loan - Adiguru Financial Services

Worried About a 650 CIBIL Score? 5 Easy Steps to Boost Home Loan Approval Chances

by
Blog

A CIBIL score of 650 often feels like a giant roadblock when you dream of buying a home.

Many people immediately think it means “rejection,” but that’s simply not true at all.

The reality is, even with a 650 score, you absolutely can qualify for a home loan, provided you know exactly how to present your overall financial profile.

Lenders check your score to understand how reliable you’ve been with credit in the past.

But your credit score is not the only factor they look at. Your income, job stability, the value of the property, and details about your co-applicant also play a huge role in their final decision.

In this guide, we will break down five smart, practical steps you can take today to boost your home loan eligibility and significantly increase your chances of approval even if your CIBIL score is sitting around 650.

Your 5-Step Strategy to Secure Home Loan Approval

When your CIBIL score is lower than what big banks prefer, you cannot use the standard application process.

You have to actively strengthen other parts of your financial profile and prove to the lender that you are a reliable investment today.

These five steps show you exactly how to control the factors that matter most to flexible lenders.

Step 1: Understand What a CIBIL Score of 650 Really Means

Your CIBIL score is a three digit number between 300 and 900. It essentially tells the bank how responsibly you’ve managed credit in the past.

  • A score above 750 is considered excellent.
  • 650 to 699 is generally considered the “fair” or medium risk zone.

Your score of 650 sits right in that “fair” zone. This means lenders see you as someone who has managed credit somewhat responsibly, but perhaps with a few hiccups.

These hiccups could be missing a couple of EMI payments last year or using your credit card limit too often.

Example: You might have missed two credit card payments last year but have paid your car loan EMIs regularly for three years.

A good lender will see the past slips but give more weight to your current financial stability and ability to pay.

Step 2: Choose the Right Lender Who Understands Low-CIBIL Profiles

Not every bank or company treats applicants with a CIBIL score of 650 the same way.

Some lenders are very strict, while others are much more flexible, especially if you can prove consistent income or add a co-applicant.

  • Public Sector Banks: These banks often have a balanced approach. They may still approve your loan if all your documents are perfect and the property you are buying has excellent value.

  • Private Banks: They generally prefer high CIBIL scores. However, they can still consider applicants with 650 if you have rock-solid income stability or already have a long relationship with them (like a salary account).

  • NBFCs and Housing Finance Companies (HFCs): This is often your best bet! These lenders are typically the most flexible and regularly offer loans to people with scores between 600 and 700. They focus more on your regular income flow, business performance, and current repayment capacity than just an old score.

Tip: If one bank says no, do not give up. Compare offers and talk to lenders who specialize in these low-CIBIL cases.

Adiguru Financial Services can help you quickly pinpoint the most flexible lenders for your specific situation.

Step 3: Apply with a Co-Applicant to Strengthen Your Profile

This is one of the quickest and most effective steps you can take.

Adding a co-applicant who has a better credit score can dramatically increase your approval chances. This can be your spouse, parent, or sibling who earns a stable income and has a clean credit history.

Example: Your CIBIL score is 650, but your spouse has a score of 750, and your combined household income is ₹1 lakh per month.

Lenders will focus on your strong joint repayment strength and are much more likely to approve a good loan amount, often at a better interest rate!

Having a co-applicant not only helps with the score but also shares the repayment responsibility, making it much easier for you to manage the EMIs comfortably.

Step 4: Show Income Stability and Financial Strength

When your credit score isn’t top-tier, your income becomes the deciding factor for lenders. They need solid proof that you have a stable job or a steady business that can easily support the new EMI every month.

Here’s how to make your income profile look bulletproof:

  • Maintain consistent salary credits in your bank account for at least 6 to 12 months.

  • File your Income Tax Returns (ITR) religiously and on time.

  • Keep your total existing EMIs (car loan, personal loan, etc.) below 40% of your total monthly income.

  • Make sure there are absolutely no cheque bounces or late payments in your bank account in recent months.

Example: Even with a score of 650, if your monthly income is ₹80,000 and your current debt obligations are only ₹15,000, your profile will look financially low-risk to most lenders.

Step 5: Take Simple Steps to Improve Your CIBIL Score Before Applying

Sometimes, simply waiting a few months and making smart moves can help you qualify for a much better deal. Improving your score by just 30 to 50 points can push you into a better category and make you eligible for lower interest rates.

Here are easy, reliable ways to boost your score:

  1. Pay everything on time: Ensure all EMIs and credit card bills are paid on or before the due date.
  2. Keep it low: Never use more than 30% of your credit card limit. For example, if your limit is ₹1 lakh, keep the balance below ₹30,000.
  3. Be patient: Avoid applying for multiple new loans or credit cards within a short time. This makes you look desperate for credit.
  4. Check for errors: Always check your CIBIL report for mistakes and report them immediately if you find any.

Example: If you manage to raise your score from 650 to 700, your interest rate could drop from 10.5% to 9%. Over a 20 year home loan, that small difference can save you over ₹2 lakh in total interest paid!

Extra Tip: Consider Smaller Loan Amounts Initially

If your CIBIL score is 650, a lender might be hesitant to approve a very large loan.

Instead, apply for a slightly smaller amount that easily fits your income capacity.

This helps you get your foot in the door of homeownership without delay.

Once you build a strong repayment record on this first loan, you can apply for a top-up loan in the future on much better terms!

Conclusion

Having a CIBIL score of 650 should never discourage you from applying for a home loan.

It simply means you need to plan smarter and present your financial situation in the most positive light.

By choosing the right flexible lender, adding a financially strong co-applicant, maintaining a stable income record, and making minor improvements to your credit behavior, you can absolutely secure your dream home without excessive trouble.

How Adiguru Financial Services Can Help You Today?

At Adiguru Financial Services, we specialize in helping people get the financing they need, even with low CIBIL scores or limited income proof. We believe your past doesn’t define your future.

Our team works closely with leading banks and flexible Housing Finance Companies (HFCs) that are willing to look beyond the CIBIL score.

We guide you through every single step from finding the perfect lender to documentation and final approval ensuring a transparent and stress free experience.

📞 Call us now: +91 886 652 9124 | +91 989 840 9871

📧 Email: info@adigurufinancialservices@gmail.com

🌐 Website: www.adigurufinancialservices.com

Your journey toward owning a home begins right here with Adiguru Financial Services.

FAQs

Yes, several NBFCs and HFCs provide home loans to applicants with scores around 650 if their income and repayment capacity are strong.

Most lenders prefer a score above 700, but approval is certainly possible with lower scores through specialized housing finance companies.

Yes, the rate may be slightly higher, but a strong income profile and stable employment can help you negotiate better terms.

Absolutely. A co-applicant with a strong credit history and steady income significantly increases your chances of approval.

Yes, you can check it once a year for free on the official CIBIL website or through other authorized portals.

It typically takes about 3 to 6 months of disciplined credit management and on time payments.

You can reapply after a few months once you have improved your score or simply approach the flexible NBFCs that we recommend.

Yes, it can reduce your overall average credit history length, which hurts your score. Avoid closing long standing accounts unnecessarily.

Yes, we work with lenders who provide special financial solutions even for applicants with limited or non ITR income.

It is possible, especially if your current repayment record is excellent and you have consistently made your EMIs for at least 12 months.

Add a Comment

Your email address will not be published. Required fields are marked *