How important is the CIBIL score for taking a loan from any bank?Image Credit source: TV9 Network
Are you also worried about taking a home loan? Also, if you want to get a home loan at a low interest rate, then the country’s largest bank SBI can help you in this. State-run bank SBI now offers home loan interest rate to its customers based on their CIBIL score. That is, the better your CIBIL score, the lower the home loan interest.
Let us tell you that the interest rate on some home loan products of SBI is fixed according to MCLR. The Reserve Bank of India has not made any change in the repo rate in April. That’s why there has been no change in SBI’s MCLR. By the way, apart from SBI, ICICI Bank, Union Bank and Bank of Baroda have also kept MCLR as before.
Good CIBIL Score, Cheap Home Loan
According to SBI’s website, people whose CIBIL score is better, they will have to pay less interest on home loan. It will be charged in this way.
- For those having CIBIL score of 750 or above, the minimum normal interest rate for home loan will be 9.15 percent. In such a situation, no risk premium will be charged from them.
- Those having CIBIL score from 700 to 749 will get home loan at the lowest interest rate of 9.35 percent. Here a risk premium of 0.2 percent is charged from the customers.
- The home loan interest rate will be 9.45 percent for customers having a CIBIL score of 650 to 699.
- Customers with a CIBIL score of 550 to 649 will get a home loan at a minimum interest rate of 9.65 percent.
What is CIBIL score?
CIBIL score is actually a kind of index. It assesses your ability to take and repay the loan on several parameters and on the basis of this your loan reputation ie credit goodwill is prepared. This work is done by Credit Information Bureau India Limited (CIBIL). That’s why it is called CIBIL score. Generally a CIBIL score above 750 is considered good.