What should your CIBIL score be, to get an SBI home loan?


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

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.

See also: What is the importance of a credit score or CIBIL score, in getting a home loan?

 

What SBI home loan CIBIL score do I need to get an SBI home loan?

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%.

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.

 

How to check your 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.

 

SBI home loan CIBIL

 

Step 3: Fill in the address details.

 

What should your CIBIL score be, to get an SBI home loan?

 

Step 4: Provide your identity and contact details.

 

What should your CIBIL score be, to get an SBI home loan?

 

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.

 

What are the factors that decide your 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

 

Documents required for SBI home loan

  • Duly filled SBI home loan application
  • Identity proof (Any one of these: PAN card / passport / driver’s licence/ Voter ID card).
  • Address proof (Any one of these: Copy of telephone bill, electricity bill, water bill, piped gas bill or copy of passport, driving licence or Aadhaar card).
  • Three passport-size photographs
  • Bank account statement
  • Original salary certificate from employer
  • TDS certificate on Form 16
  • PAN card
  • Property documents, including sale deed

 

FAQs

Which are the four credit information bureaus in India?

The four credit bureau companies in India that provide credit information are: 1. TransUnion CIBIL 2. Equifax 3. Experian 4. CRIF Highmark

What is current rate of interest on SBI home loan?

SBI is currently charging 6.7% annual interest on home loans. However, the lowest rate is offered only to borrowers with a good credit score.

What is the range of credit score?

A credit score can range between 300 and 900.

 

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