Short answer: Often yes. A score below 750 does not automatically block a home loan, but it usually means a higher interest rate, and below about 650 your options narrow. LIC Housing Finance, like most lenders, prices home loans by credit-score band: the best rates go to the highest bands. The fastest improvements come from fixing report errors, clearing overdues and keeping card usage low.
By Vijay Arjun V (B.Pharm, PGDM): authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Last reviewed: 29 September 2026.
How your score changes the deal
| CIBIL score | What to expect |
|---|---|
| 750 and above | The lender’s best published rates for your loan size; smooth approval if income and property are in order |
| 700 – 749 | Approval is common, usually at a somewhat higher rate |
| 650 – 699 | Possible, at a higher rate; lenders look closely at recent repayment history |
| Below 650 | Harder; a strong co-applicant, a lower loan amount, or a few months of repair usually needed |
| No score (new to credit) | Not a rejection by itself; lenders assess income and banking history |
Scores run from 300 to 900. Exact rates by band change with each LIC HFL circular; ask us for the current rate for your band.
Why a low score costs you money
A higher rate adds up over a long loan. On a ₹50 lakh loan over 20 years, every 0.25% extra adds roughly ₹775 to the monthly EMI at a 7.75% base rate, or close to ₹2 lakh over the life of the loan. Improving your score before you apply can be worth more than any festive discount.
Check your report first
Download your full credit report. You are entitled to one free full report a year from each credit bureau. Look for:
- Loans or cards you never took
- Accounts shown as open or overdue that you closed or paid
- “Settled” or “written-off” status on old loans
- Payments marked late that were on time
Raise a dispute with the bureau for any error, and ask the lender concerned to correct it at the same time.
Five ways to improve your score
- Clear any overdue amount immediately, even a small one.
- Keep credit card usage below about 30% of the limit, and pay the full bill on time.
- Convert “settled” to “closed” where possible by paying the balance the lender waived and asking for a no-dues letter.
- Avoid new loan or card applications in the months before your home loan.
- Keep old cards open if they have a clean history; a longer history helps.
Lenders now report to credit bureaus more frequently than before, so clean repayments begin to show sooner, but a damaged history still takes months, not days, to recover.
If you cannot wait
- Add a co-applicant with a strong score, such as a spouse or parent with their own income.
- Borrow less with a larger down payment.
- Ask about specific schemes. LIC HFL’s Griha Suvidha assesses some profiles differently at a higher rate.
If a lender has already refused you, read what to do after a home loan rejection.
What to do next
Share your credit report with us. We will tell you which LIC HFL band you fall into, the rate to expect, and whether it is worth fixing anything before you apply.
Related: The rate for every score band: minimum CIBIL score for an LIC HFL home loan.
Frequently asked questions
What is the minimum CIBIL score for a home loan?
There is no single minimum. Many lenders prefer 700–750 or more; lower scores can still qualify at a higher rate or with a co-applicant.
Can I get a home loan with a 650 CIBIL score?
It is possible, usually at a higher rate, and lenders look closely at the reasons for the score and your recent repayments.
Does checking my own CIBIL score reduce it?
No. Checking your own report is a soft enquiry and does not affect your score.
How long does it take to improve a CIBIL score?
Correcting an error can take a few weeks. Rebuilding after late payments usually takes several months of clean repayment.
Does a co-applicant’s score matter?
Yes. Lenders check every applicant’s credit report, so a co-applicant should have a clean record.
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About the author: Vijay Arjun V is a DME (Direct Marketing Executive) appointed by LIC HFL and runs Elite Financial Services, an authorised DSA of LIC Housing Finance in Kukatpally, Hyderabad. Disclosure: We are a DSA, not the lender. Loan sanction, amount, interest rate and tenure are at LIC Housing Finance’s sole discretion. Figures are illustrative; your actual eligibility depends on your full profile.
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