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A 600 credit score, at the lower end of the "fair" range, can affect home loan prospects significantly. Traditional loan options may be limited, as lenders often see lower scores as higher risk, potentially leading to higher interest rates. For those with a 600 score, FHA loans, which are more lenient with credit requirements and down payments, could be a viable alternative.
However, be prepared for possibly higher down payments and thorough scrutiny of your financial situation, including employment history and debt-to-income ratio. Improving your credit score through timely debt payments and responsible financial behaviour can benefit future loan opportunities, offering better terms. This proactive approach can gradually enhance creditworthiness, making securing a home loan more accessible and affordable in the long run.
While a 600 credit score is generally considered on the lower side of the credit spectrum, there are still some potential benefits when it comes to home loans:
Availing a home loan with a credit score of 600 is a challenge, and if an applicant goes to the leading institutions, he or she might get rejected. This is where one can rely on NBFCs that may offer an individual a home loan even with a credit score as low as 600. Let’s take a look at such NBFCs.
If you have a low credit score of 600 or less, you can turn to Bajaj Finserv NBFC for your financial borrowing needs. Here is a quick rundown of Bajaj Finserv home loan.
| Loan Amount | 15 CR |
| Interest Rate | 8.50% onwards |
| Repayment Tenure | 48 hours |
| Processing Fee | Up to 7% of the loan amount |
Here is another option one can go to. Muthoot Fincorp is a key player in India’s non-banking finance sector and caters to individuals, small businesses, and rural communities. This lender sanctions 600 credit score home loans to applicants with the following particulars.
| Loan Amount | Up to INR 25 Lakhs |
| Interest Rate | 12%-18% |
| Repayment Tenure | Up to 20 years |
| Processing Fee | 2% of the loan amount |
Aditya Birla Capital is another major NBFC in India that constantly enhances its digital capabilities to solidify its position as a leading NBFC. It could also be your ideal choice if you have a credit score on the lower end.
| Loan Amount | Up to 10 Crore |
| Interest Rate | 8.85%-16.50% |
| Repayment Tenure | Up to 30 years |
| Processing Fee | Up to 1% of the loan amount |
Reliance Capital offers diverse services, including asset management, insurance, and capital markets. Here is what you can expect if considering a home loan with a 600 credit score.
| Loan Amount | 10 Crore |
| Interest Rate | 9.75%-13.00% |
| Repayment Tenure | Up to 30 years |
| Processing Fee | 0.5% to 1.5% plus GST |
If you have a low credit score, then applying home loan with L&T Finance would be a wise decision. Here is a brief on their home loan scheme.
| Loan Amount | Up to 7.5 Crores |
| Interest Rate | 8.60% onwards |
| Repayment Tenure | 25 years |
| Processing Fee | Up to 3% of the loan amount + applicable taxes |
You can easily apply for different loans with a 600 credit score. Here is a list of loans that you can expect with a 600 credit score on your side.
You can get a home loan with a credit score as low as 600. However, you will need to pay higher interest rates through monthly instalments.
FHA Mortgage Loans, insured by the Federal Housing Association (FHA), are popular among borrowers who do not meet conventional loan requirements. They cater to individuals like married couples, recent graduates, or those with bad credit ratings, offering security against defaults and lower initial instalments. With a 600 credit score, you can get a FHA loan without much hassle.
A Vehicle Loan in India enables the purchase of two and four-wheelers for personal use. With a 600 credit score, you can easily apply for an auto loan from your respective NBFC.
A 600 credit score can land you a personal loan via top NBFCs. You can use these personal loans for various purposes, from vacationing to consolidating your debts.
Even though it is not a premium one, but with a 600 credit score, you can get various banks’ credit cards like Axis Bank Insta Easy Credit Card and SBI Unnati Credit Card, among others.
With a credit score between 600-650, you can easily apply for a student loan and pursue higher studies.
You may get a business loan with a credit score of 600-650. However, as a small business entity, there are strong chances you will need to pay higher interest rates.
Obtaining a debt consolidation loan with a 600 credit score is feasible but may come with higher interest rates and stricter terms due to the perceived risk. In this case, exploring options with credit unions, community banks, or alternative lenders, who may offer more flexibility for lower credit scores, is advisable.