My Cibil score is 583 due to delay in credit card payments, but i have paid all the outstanding recently and looking for an immediate home loan from a national bank or NBFC. will by loan application be approved?
Giving loan to eligible borrowers is the main business to banks or NBFCs. However, all lenders do look up at the financial profile of the borrower, like credit history and financial capacity (for repayment) or asset hold by the borrower. After making an assesement based upon these factors, lenders decide whether to give any loan or a credit card to the borrower.

Having said that, do remember, credit score is just one of the parameters used by banks and lenders for assessing the borrower.

The main reason why your credit score is low, is delay in repayments of dues, which are considered as default by lenders. This cannot be rectified overnight.

Kindly understand, credit score changes over time, as your circumstances change. For example, paying off a loan could result in a higher credit score, while missing several repayments could reduce it. However, remember, there are no short cuts for improving credit score as and when you want.

Try obtaining a small loan against an asset and repay it without any defaults. This will help you improve your credit score, after which you can approach any lender for a home loan.
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Abhay Datar Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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