Home Loan FAQs | Butter Money

Question 1

Is checking eligibility going to hurt my CIBIL score?

Accepted Answer

When you apply directly to multiple banks, each one runs a hard CIBIL check, which can drop your score by 20 to 40 points and hurt the very rates you're trying to compare. Butter Money doesn't pull your CIBIL during the eligibility check. We use your self-reported score, which you can check for free on apps like GPay, CRED, or the official CIBIL site, to match you with the right lenders. A hard CIBIL check happens only once: when you choose a specific lender and submit a formal application.

Question 2

Is your service really free? What's the catch?

Accepted Answer

Yes, free for borrowers. The lender pays us a referral fee only after your loan is disbursed. Our advisors are compensated on borrower satisfaction scores, not on which lender pays the highest commission. So the lender fee doesn't influence our recommendation.

Question 3

How is this different from BankBazaar or Paisabazaar?

Accepted Answer

Aggregators send your number to multiple banks, who then call you in parallel. You do all the comparison work yourself. We assign one dedicated advisor who shortlists 3 to 5 lenders for your specific profile, flags hidden charges, and stays with you till disbursal. Your number goes to a lender only after you've chosen them.

Question 4

How long does the whole process take?

Accepted Answer

For salaried applicants: 7 to 12 working days from application to sanction. For self-employed and business owners: 12 to 15 days, because the documentation review is heavier.

Question 5

My CIBIL is below 700. Can I still get a loan?

Accepted Answer

Probably yes. We work with NBFCs and HFCs that specialise in 650 to 720 profiles. Your advisor will tell you upfront which lenders are realistic for your situation, so you don't waste time on applications that will reject.

Question 6

What documents will I need?

Accepted Answer

Salaried: PAN, Aadhaar, last 3 months' salary slips, last 6 months' bank statements, Form 16, and property documents if finalised. Self-employed: same as above, plus ITRs for the last 2 to 3 years and business proof. Your advisor will share a personalised checklist after the eligibility check.

Question 7

What if I get sanctioned and decide not to take the loan?

Accepted Answer

You're under no obligation to disburse a sanctioned loan. Some lenders charge a small commitment fee at the sanction stage. Your advisor will flag any such fee before you sign.

Home loans at 7.1%* made smooth!

Home loans at 7.1%^*
made smooth!