To get loans at State Bank of India at its best interest rate, borrowers will have to familiarise themselves with SBI CIBIL score. CIBIL stands for Credit Information Bureau (India) Limited. In fact, you cannot overlook SBI CIBIL score check, if you want to ensure that your SBI home loans application is not rejected. The extent to which the reduced rates will apply, however, be decided by the bank, based on a candidate’s CIBIL score.
See also: Learn about CRAR ratio
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.
See also: What is the importance of a credit score or CIBIL score, in getting a home loan?
What is the minimum CIBIL score need for SBI home loan?
SBI does not offer home loans to borrowers with a credit score of less than 550.
How CIBIL score affects SBI home loan interest rates?
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’.
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.
See also: All about types of mortgage
Does a co-applicant’s CIBIL score affect loan approval?
When applying for a joint home loan from State Bank of India (SBI), the credit score of each applicant is evaluated independently. This means that even if the primary applicant has a high CIBIL score, a poor score of the co-applicant — such as a spouse, parent, or sibling — can negatively affect the bank’s decision.
SBI considers the combined repayment capacity and risk profile of all applicants involved in the loan. If either applicant has a low credit score or a poor repayment history, the bank may:
- Reduce the sanctioned loan amount
- Offer a higher interest rate
- Reject the loan application altogether
In many cases, adding a co-applicant with a strong credit profile can actually enhance eligibility and improve the interest rate offered. This is especially helpful when the primary borrower’s income alone does not meet the eligibility criteria.
Borrowers should ensure that both credit reports are error-free and reflect healthy financial behavior before applying jointly. This increases the chances of loan approval and better terms from SBI.
SBI’s risk assessment process
State Bank of India (SBI) employs a comprehensive risk assessment process to evaluate home loan applications, focusing on several key factors:
- Income:
- Assessment: SBI examines the applicant’s income level, stability, and growth potential. A consistent and sufficient income indicates a higher repayment capacity, positively influencing the risk evaluation.
- Employment stability:
- Assessment: The bank considers the applicant’s employment status, including the nature of employment (salaried or self-employed), tenure with the current employer, and overall job stability. Long-term employment with reputable organizations is viewed favorably.
- Credit history:
- Assessment: A thorough review of the applicant’s credit history is conducted, focusing on the CIBIL score and past repayment behavior. A higher credit score reflects responsible credit management and reduces perceived risk.
Weightage in risk assessment: While SBI does not publicly disclose the exact weightage assigned to each factor, it is understood that a balanced evaluation is performed. Income and employment stability are crucial for assessing repayment capacity, whereas credit history provides insight into the applicant’s financial discipline. A strong performance in all these areas enhances the likelihood of loan approval under favorable terms.
SBI internal scoring model along with CIBIL
When evaluating loan applications, the State Bank of India (SBI) employs a dual approach by integrating internal credit scoring models alongside external credit scores, such as those from CIBIL. This comprehensive assessment ensures a more accurate evaluation of an applicant’s creditworthiness.
Internal credit scoring models:
- Customized assessment: SBI has developed proprietary credit risk assessment models tailored to its specific lending criteria and risk appetite. These models analyze various factors, including an applicant’s financial behavior, transaction history with the bank, and other pertinent data.
- Dynamic evaluation: The internal models are periodically reviewed and validated to adapt to changing economic conditions and emerging risk factors. This dynamic approach allows SBI to maintain the efficacy and accuracy of its credit assessments.
Integration with CIBIL scores:
- Holistic credit evaluation: While CIBIL scores provide a standardized measure of an individual’s credit history across financial institutions, SBI’s internal models offer insights specific to the bank’s experiences with the customer. By combining both, SBI achieves a more nuanced and holistic understanding of an applicant’s credit profile.
Risk-based decision making: This integrated approach enables SBI to make informed lending decisions, ensuring that credit is extended to applicants who meet both external benchmarks and the bank’s internal risk criteria.
How to check your SBI CIBIL score?
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.
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.
See also: All about RBI home loan interest rate
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:
- Misuse of your credit limit
- Late payments of loans
- Higher percentage of credit cards or other loans
- Too many credit-related inquiries
See also: What is legal and technical verification of property in home loan?
RBI’s stance on risk-based pricing and credit score tiers
The practice of offering different home loan interest rates based on a borrower’s credit score is not arbitrary — it is fully permitted by the Reserve Bank of India (RBI) under its external benchmark lending rate (EBLR) framework. Introduced in 2019, the EBLR system links loan interest rates to an external reference (such as the RBI repo rate), but it also allows lenders to apply a credit risk premium based on the borrower’s creditworthiness.
In other words, while all borrowers benefit from a common benchmark like the repo rate, the final rate charged by SBI can vary depending on your CIBIL score. This ensures that borrowers with excellent credit behaviour (scores above 750 or 800) are rewarded with the lowest rates, while those with lower scores are offered higher rates to account for elevated risk.
RBI’s guidelines specifically allow this risk premium to be determined by the bank’s internal policies, provided they are clearly laid out, transparent, and non-discriminatory. SBI, like most banks, uses this flexibility to align its interest rates to the borrower’s credit profile, employment type, income level, and repayment history.
Therefore, understanding RBI’s stance helps borrowers see that tiered interest rates based on credit scores are not a bank-specific practice, but a regulator-sanctioned system designed to promote responsible borrowing and fair pricing.
Impact of different CIBIL score ranges
Understanding how various CIBIL score ranges impact loan eligibility and interest rates is essential for borrowers.
Credit score below 550
- Eligibility: Loan applications are typically rejected as this score indicates poor creditworthiness.
- Interest rates: Not applicable, as loans are rarely approved for this range.
- Advice: Improve your credit score by repaying debts on time and lowering credit utilisation.
Credit score between 550-649
- Eligibility: Loans may be approved but under stricter terms. SBI may classify applicants in this range as high-risk borrowers.
- Interest rates: Generally higher, starting around 9.40% or more.
- Advice: Consider securing a co-applicant with a better credit score or providing additional collateral to improve approval chances.
Credit score between 650-749
- Eligibility: Loans are usually approved, as this score reflects moderate creditworthiness.
- Interest rates: Competitive rates, but not the lowest. SBI might offer rates between 9% and 9.40% depending on income and other factors.
- Advice: Maintain steady income proof and reduce outstanding debts to negotiate better terms.
Credit score 750-799
- Eligibility: Strong approval chances, as this score reflects good credit behavior.
- Interest rates: Lower rates, often around 9% or slightly less.
- Advice: Keep credit utilization below 30% and avoid applying for multiple loans to maintain or improve this score.
Credit score 800 and above
- Eligibility: Almost guaranteed approval, as this score signifies excellent credit health.
- Interest rates: Best rates offered by SBI, starting at 8.90%.
- Advice: Regularly monitor your score and ensure timely payments to retain this favourable position.
CIBIL score and SBI pre-approved home loans (PAPL)
State Bank of India offers Pre-Approved Home Loans (PAPL) to select customers based on their existing banking relationship and credit profile. While these offers are made without a formal loan application, your CIBIL score still plays a crucial role.
SBI typically shortlists customers with a credit score of 750 and above for pre-approved offers. However, the final disbursal still depends on property verification, income documents, and internal risk checks.
If your score is below 750:
- You may not receive pre-approved offers.
- Even if you do, the sanctioned amount could be lower, or the interest rate higher.
What is the reason for a low CIBIL score?
Some of the leading reasons behind low CIBIL score include:
- Poor repayment track record
- Multiple queries for loan
- Errors in your CIBIL report
- Regular high credit utilisation ratio
- High exposure to unsecured loans
- No exposure to credit
Credit score fluctuation after SBI home loan inquiry
When you apply for a home loan with the State Bank of India (SBI), the bank conducts a hard inquiry into your credit report to assess your creditworthiness. This type of inquiry can cause a temporary decrease in your CIBIL score, typically by a few points. However, this impact is usually minor and short-lived, provided you maintain responsible credit behavior.
Key points to consider:
- Hard inquiries: Occur when lenders, like SBI, review your credit report during the loan application process. Multiple hard inquiries in a short period can compound the negative effect on your credit score.
- Soft inquiries: Checking your own CIBIL score is considered a soft inquiry and does not impact your credit score. Regular self-checks are advisable to monitor your credit health.
Recommendations:
- Limit multiple applications: Avoid applying for several loans or credit cards simultaneously, as each application can lead to a hard inquiry, collectively lowering your credit score.
- Monitor your credit: Regularly review your credit report to ensure accuracy and stay informed about your credit status.
Credit score improvement services offered by SBI
Recognising that many potential borrowers struggle with low credit scores, the State Bank of India (SBI) offers informal assistance and tools to help individuals improve their credit health before applying for a home loan. Through its YONO mobile app, SBI allows users to monitor their credit score and get basic insights into improving it over time.
Additionally, customers who visit SBI branches can often receive advisory support from bank officials regarding the specific issues affecting their credit score — such as delayed payments, excessive credit utilisation, or unresolved loan defaults. While SBI does not offer formal credit counselling, the bank may guide borrowers on steps like clearing small dues, consolidating debt, or maintaining a stable credit mix to gradually enhance their eligibility.
Using SBI’s platforms, prospective borrowers can track their score regularly, understand risk factors, and plan for timely improvements — helping them qualify for better interest rates or pre-approved offers in the future.
The impact of credit scores on loan-to-value (LTV) ratios
The loan-to-value (LTV) ratio is a critical metric that lenders use to assess the risk associated with a mortgage loan. It represents the proportion of the loan amount to the property’s appraised value. A borrower’s credit score significantly influences the acceptable LTV ratio, impacting loan approval and terms.
Influence of credit score on LTV ratio
- High credit scores: Borrowers with solid credit scores are perceived as lower risk. Lenders may offer higher LTV ratios, allowing for smaller down payments. For instance, conventional loans often permit LTV ratios up to 80%, but borrowers with excellent credit may access programs with LTVs up to 97%.
- Low credit scores: Borrowers with lower credit scores are viewed as riskier. Lenders typically require lower LTV ratios, necessitating larger down payments to mitigate potential losses. This means that individuals with poor credit may need to provide a more substantial down payment to achieve a favourable LTV ratio.
Implications for borrowers
- Interest rates: A lower LTV ratio and a high credit score can lead to more favourable interest rates. Conversely, higher LTV ratios and lower credit scores may increase interest rates due to increased lender risk.
- Private mortgage insurance (PMI): Borrowers with high LTV ratios may be required to purchase PMI, especially if their credit scores are not exemplary. This insurance protects the lender in case of default and adds to the overall cost of the loan.
Strategies to improve the LTV ratio
- Enhance credit score: Improving your credit score can make you eligible for higher LTV ratios and better loan terms. This involves timely payments, reducing outstanding debts, and correcting any errors in your credit report.
- Increase down payment: Providing a larger down payment reduces the LTV ratio, which can offset the impact of a lower credit score and potentially lead to more favourable loan conditions.
Alternate credit scores
SBI, while primarily relying on TransUnion CIBIL to evaluate home loan applications, also considers credit scores from other authorised credit bureaus such as Experian, Equifax, and CRIF Highmark. These scores are equally recognised under the Credit Information Companies (Regulation) Act, 2005, and can influence your home loan eligibility.
How alternate credit scores work
Alternate credit scores are calculated using factors similar to CIBIL scores, such as repayment history, credit utilisation, and the type and duration of credit. While the scoring models might vary slightly between bureaus, the underlying data is consistent. For example, Experian provides scores ranging between 300 and 900, just like CIBIL.
SBI’s consideration of alternate scores
If an applicant’s CIBIL score is low or unavailable, SBI might consider scores from other bureaus. This can benefit borrowers who may have inconsistencies in one bureau’s report but better records in another. However, applicants should ensure all reports are accurate and reflect up-to-date credit activity.
Importance of checking all credit scores
Before applying for an SBI home loan, it’s advisable to check your scores from all major credit bureaus. Discrepancies between reports can occur due to errors or delayed updates. Resolving these issues can strengthen your loan application and improve your chances of securing favourable terms.
Advantages of alternate credit scores
- Backup option: If one credit score is unexpectedly low, an alternate score can provide a better reflection of your creditworthiness.
- Broader approval scope: Borrowers with limited credit history on CIBIL may have a more detailed record on Experian or Equifax, improving their chances of loan approval.
- Balanced evaluation: SBI can form a more comprehensive view of the applicant’s financial behaviour by considering multiple scores.
Using alternate credit scores gives borrowers flexibility and an opportunity to present a stronger case for their home loan application. Ensure all reports are error-free and demonstrate consistent financial responsibility for the best outcome.
How to check your free Experian credit score?
- Go to Experian’s website.
- Click on ‘Free Credit Score’.
- Now, enter your phone number and click on ‘Send OTP’.
- Enter the OTP and click on ‘Verify’.
- Enter your personal details and click on ‘Get Report’.
- You will receive your credit report in your email
How do you correct errors in your CIBIL report?
Ensuring the accuracy of your CIBIL report is crucial, as errors can adversely affect your credit score and hinder your ability to secure loans or credit cards. If you identify inaccuracies in your report, it’s essential to address them promptly. Here’s a step-by-step guide to rectifying errors in your CIBIL report:
1. Obtain your CIBIL report
Access your report: Visit the official CIBIL website or use authorized channels to obtain your latest credit report. You’re entitled to one free report annually.
Review thoroughly: Examine the report for discrepancies in personal information, account details, payment history, and any unfamiliar credit inquiries.
2. Identify and document errors
Common errors:
- Incorrect personal details (e.g., name, address, PAN).
- Accounts that don’t belong to you.
- Inaccurate account statuses (e.g., showing open instead of closed).
- Incorrect payment histories or outstanding balances.
Gather evidence: Collect supporting documents such as payment receipts, bank statements, or closure certificates to substantiate your claims.
3. Raise a dispute with CIBIL
Online dispute resolution:
- Log in to your CIBIL account on the official website.
- Navigate to the ‘Dispute Resolution’ section.
- Fill out the online dispute form, specifying the inaccuracies and providing necessary details.
- Submit the form and note the dispute ID for future reference.
Offline dispute resolution:
Draft a letter detailing the errors, including copies of supporting documents.
Send the letter to:
TransUnion CIBIL Limited
One World Center, Tower 2A, 19th Floor,
Senapati Bapat Marg, Elphinstone Road,
Mumbai – 400013
4. Follow up on the dispute
- Processing time: CIBIL typically takes up to 30 days to investigate disputes.
- Verification: CIBIL will contact the relevant financial institution to verify the disputed information.
- Resolution: If the institution confirms the error, CIBIL will rectify your report and notify you of the changes.
5. Check the updated report
After resolution, obtain a fresh copy of your CIBIL report to ensure the inaccuracies have been corrected.
State Bank of India’s home loan interest rates in 2025
As of April 7, 2025, the State Bank of India (SBI) has structured its home loan offerings as follows:
Current home loan interest rates
- Interest rates: Starting from 8.25% per annum.
Recent revisions
- External benchmark lending rate (EBLR): Effective February 15, 2025, SBI reduced its EBLR by 25 basis points to 8.90%. This adjustment followed the Reserve Bank of India’s repo rate cut from 6.50% to 6.25%.
- Marginal cost of funds-based lending rate (MCLR): As of March 15, 2025, the one-year MCLR stands at 9.00%, with other tenures adjusted accordingly.
Interest rate based on credit score
- Applicants with higher CIBIL scores are eligible for more favorable interest rates. For instance, individuals with a CIBIL score of 750 and above may secure rates starting from 8.25% per annum.
Processing fees and additional charges
- Processing fee: SBI charges 0.35% of the loan amount as a processing fee, subject to a minimum of ₹2,000 and a maximum of ₹10,000, plus applicable taxes.
- Concessions for women applicants: A concession of 0.05% on the interest rate is offered to women borrowers.
- Prepayment charges: SBI offers a full waiver of prepayment charges, allowing borrowers to repay their loans ahead of schedule without incurring additional costs.
Comparative perspective
- Bank of baroda: Offers home loan interest rates ranging from 8.15% to 10.65% for loans above ₹75 lakh.
- Punjab national bank: Provides rates between 8.15% and 9.90% for similar loan amounts.
- HDFC Bank: Offers home loan interest rates starting from 8.75% per annum.
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
See also: Learn about RBI complaint email ID and RBI complaint filing process
SBI CIBIL score 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.