Home loan inquiries increased 18% in Q1 2012: CIBIL

AHMEDABAD: Home loan inquiries increased by more than 18% in Q1 2012 compared to Q1 2011 indicating surging demand for home loans, according to Credit Information Bureau (India) Ltd ( CIBIL).

CIBIL Home Loan Trends indicate higher ticket size of home loans being disbursed pan-India. Near 48% of the total home loans sanctioned in metros in 2011, had a ticket size of more than Rs 20 lakh while those in Ahmedabad, Pune, Kanpur, Lucknow, Chandigarh, Jaipur were 24%.

Home loans with ticket size of less than RS 50 lakh increased to over 12% in 2011 against 7% in 2007. Home loan inquiries have doubled since 2007, CIBIL report indicates.

CIBIL study indicates that more than 88% of new home loan borrowers in 2011 had a credit score of 750 and above. Higher the CIBIL TranUnion Score that ranges from 300 to 900, better chances of getting loans sanctioned, said Arun Thukral, MD, CIBIL. "Closer is a consumer's score to 900, more confidence banks have on the individual's ability to repay," he reasoned.

Banks and financial institutions have started accessing CIBIL reports and the credit score before sanctioning a loan.