SBI CIBIL score: All about SBI home loan CIBIL and SBI CIBIL score check

[ecis2016.org] Borrowers need to have an impressive credit score to get a home loan from SBI, India’s largest public lender, at attractive interest rates

To get loans at State Bank of India at its best interest rate, borrowers will have to familiarise themselves with SBI CIBIL score.  In fact, you cannot overlook SBI CIBIL score check, if you want to ensure that your SBI home loan application is  not rejected.

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CIBIL full form

CIBIL stands for Credit Information Bureau (India) Limited.

SBI CIBIL score: What is it?

SBI CIBIL score  is the criterion based on which the public lender processes your loan request. To conduct SBI CIBIL score check, you have to first understand what a CIBIL score is.

TransUnion CIBIL, more commonly known as CIBIL, is among the four credit information companies in India that keep a record of an individual’s credit history. Based on this credit history, which has all the information about all past and ongoing transactions and credit cards, banks in India, including State Bank of India (SBI), grant home loans to borrowers.

Since India’s largest lender SBI is currently offering loans at an annual interest of 6.70%, it is possibly the best time to avail of a loan from the public-run bank. As your CIBIL report will play a crucial role in deciding whether or not SBI will approve your home loan application, it becomes pertinent to know everything about the SBI home loan CIBIL score you need to have, to get the SBI home loan. We will also explain how a good credit score impacts your home loan repayment.

[ecis2016.org] What is the importance of a credit score or CIBIL score, in getting a home loan?

SBI home loan CIBIL

Practically all banks in the country offer their lowest interest on home loans to applicants with a credit score of over 750. The same is true of SBI too. While any one can apply for home loans at SBI, it is at the lender’s discretion to approve the home loan. It is also entirely up to the bank to offer you its lowest interest rate, depending on what SBI terms as your ‘risk score’.

Note that SBI, at any point, of time charges interest rates on home loans based on a range. For example, in its festive offer for 2021, you can currently get a home loan at SBI starting at 6.7% interest while the highest rate at present is 6.90%.

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While SBI’s best rate, i.e., 6.70% interest, is offered to an applicant with a CIBIL score of over 800, applicants with a CIBIL score of between 751 and 800 will be charged 6.8% interest on their home loan.

An applicant who has a SBI home loan CIBIL score between 700 and 750 will be charged 6.90% interest at SBI.

In case the applicant has a credit score lower than this, they will have to pay a much higher interest on the home loan. Also, it would be entirely up to the bank to fix this rate for you.

To track the latest news about SBI home loans, click here.

However, be advised that SBI seldom specifies the exact CIBIL score range for loan approvals. It is also quite important to understand that your credit score is not the only thing based on which SBI home loan is sanctioned. Since there are various other factors involved, including your income, the type of occupation and your personal eligibility, etc., SBI may or may not offer you the best rate on loan despite a good credit score.

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How to check your SBI CIBIL score for SBI home loan?

You can check your SBI home loan CIBIL score before applying for SBI home loan, to have a better clarity about which way your application would go and whether you would be able to get the best rate on your home loan. This CIBIL report is typically offered for free of cost.

To do this, you can use the official portal of SBI and know your score by following some simple steps.

Step 1: Visit the site, https://homeloans.sbi/getcibil.

Step 2: Now fill in the details the page asks for. First comes your personal information, including name, gender and date of birth.

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Step 3: Fill in the address details.

Step 4: Provide your identity and contact details.

Step 5: Once you have filled in all the details, just check the box asking you to accept the terms and conditions, before you hit the submit button.

Step 6: Representatives from SBI may get in touch with you to ask for additional information if need be. Following this, they will mail you a free SBI home loan CIBIL report.

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What are the factors that decide your SBI CIBIL score?

Credit bureaus, including CIBIL, assign you a rating based on your repayment history (all loans like credit card dues, home loan, car loan and education loan are included here), existing loan and credit utilisation, types of loan and tenure and the number of credit inquiries. Now, there are several factors that can adversely affect your CIBIL credit rating. These include:

1. Misuse of your credit limit
2. Late payments of loans
3. Higher percentage of credit cards or other loans
4. Too many credit-related inquiries

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