You may have worked hard for a number of days to put together money for the down payment of a particular loan, but in today’s date, doing that is not enough. Unless and until a prospective bank or financial institution thinks that you are loan worthy by taking a look at your Cibil score and Cibil report, your plans of getting access to easy credit, may just get squashed. So what do you do to ensure that your loan application gets a fair chance? To check how credit worthy you are, you must put yourself in the shoes of the lender and see whether or not you are meeting the essential credit criteria. With the RBI cracking down on credit appraisal processes of financial institutions, it has become very important for prospective lenders to judge one’s creditworthiness appropriately. Towards this end any lender will also comb through your Cibil report to see whether or not you meet the their requirements. So if you are applying for a loan, or intend to do so in the near future, here’s the mantra you should know -the six C’s of credit.

1. Mantras To Follow While
Taking A Home Loan

3. * Your credit report is a reflection of whether or not you have a
good credit character.
* Check your Cibil report at least once annually to see whether
everything is in order and your financial obligations appear as
they exist in your credit report.
#1 Character

4. * When you make your home loan application, your lender will
ask you to submit income related documents such as your salary
slips and IT returns.
* This is to judge whether you have adequate capacity or the
ability to make a timely repayment of the loan.
#2 Capacity

5. * While assessing your loan eligibility, the lender would look at
the amount you have left after you have met your debt obligations.
* If you have a property in your name, it will work in your favour.
The lenders need to be assured that you have enough capital to
fall back on to be able to handle a new credit.
#3 Capital

6. How much of your income is left once you meet your other debt
obligations and paying off your bills? This portion of your
income will qualify as your cash flow, and the lender needs to be
assured that you have enough of it before it approves your loan.
#4 Cash Flow

7. * If you own any property then it can be shown as collateral when
you are applying for a loan.
* In case you cannot make your debt repayments, your collateral
will then go under the possession of the bank which will sell it
off to repay your loan.
#5 Collateral

8. * In order to assess your loan eligibility the lender will also
scrutinize other conditions such the stability of your employment.
* A prospective lender essentially looks for stability in your job
profile and will not be impressed by frequent jumps in your career.
#6 Conditions

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