A Good CIBIL Score Can Get You Cheaper Home Loan. (Representative image)
State Bank of India (SBI) is offering interest rate discounts on home loans for those having a good CIBIL score
Even as the interest rates in the economy are prevailing at high levels after back-to-back repo rate hikes by the RBI since May 2022 till recently, borrowers are looking for cheaper loans. One way to get cheap interest rates on home loans is to have a good CIBIL score. State Bank of India (SBI) is offering interest rate discounts on home loans for those having a good CIBIL score.
CIBIL score is a credit score of an individual. It scales the credit discipline of the person between 300 and 900. The higher the score, the better it is. Generally, a score above 750 is considered good where the chances of loan approval become higher. The score gives an overall indication of the individual’s creditworthiness and history. Also, the CIBIL report (which has the CIBIL score as a part) reveals whether the person has ever defaulted on any repayment in the past.
Apart from easy approval of the loans, the CIBIL score also helps the borrowers get cheaper loans. For instance, on home loans, State Bank of India (SBI) offers loan rates based on the credit score of the borrower.
SBI’s Discount On Home Loan Interest Rates Based on CIBIL Score:
101-150 CIBIL score: For those who come under this range, the bank is not offering any discount, the effective home loan interest rate is 9.45 per cent.
151-200 CIBIL score: SBI is offering a discount of 10 bps during the offer period and the effective rate in the period stands at 9.35 per cent.
550-649 CIBIL score: The bank is also offering discount at this score. The effective rate is 9.65 per cent.
650-699 CIBIL score: The bank is not offering any discount at this score. The effective rate is 9.45 per cent.
700-749 CIBIL score: SBI is offering a discount of 10 bps during the offer period and the effective rate is 9.35 per cent.
750-800 CIBIL score: For CIBIL score ranging between 750-799 and above, the home loan interest during the offer period is 9.15 per cent with a concession of 30 bps.
Score bands of 101-150 and 151-200 are assigned by CIBIL for ‘New to Credit’ borrowers.
How To Check CIBIL Score Online?
CIBIL provides one report a year without any charge. That can be checked online. Following are the steps through which you can check the CIBIL score:
1) Go to the official CIBIL website