SBI Home Loan Cibil Score

Are you planning for a dream home? You can avail of SBI Home Loan at the best rate by complying with the minimum CIBIL Score for SBI Home Loan criterion. Apply for the SBI Home Loan through MyMoneyMantra to make the loan process hassle-free. Get an idea about the SBI Home Loan Credit Score requirement by browsing through the entire article.

SBI Home Loan Free CIBIL Score

CIBIL is one of the four credit information bureaus that keep a record of all the past and existing loans, repayment history, credit card utilisation etc. A score between 300 to 900 is awarded based on the credit history of the individual. CIBIL Score is the crucial factor considered before awarding a loan. The minimum CIBIL Score for SBI Home Loan is 650 to 750. But the ideal SBI Home Loan CIBIL Score that will fetch the loan at a competitive interest rate will be 750 and above.

CIBIL Score Required for SBI Home Loan

A home loan is a secured loan offered for the purchase or construction of a house, repurchase of a flat or house, renovation of the existing house, and home improvement. Besides the age, employment, income and security criteria, there is another criterion that plays a very significant role in the credit decision of the bank. It is the SBI Home Loan CIBIL Score. For SBI Home Loan, the good credit score range is 650 to 750.

The interest rate for SBI Home Loan is based on the CIBIL Score and internal credit rating. If you have a good credit score, then you can get the SBI Home Loan at the best rate, which will reduce the cost of the loan. Also, the approval for the loan will be faster and without any hassles. 

A good score may also help you to attain other credit facilities from SBI with great ease. So before approaching the bank for a home loan, review your credit report and try to set right the discrepancies, if any, to improve the credit score.

Minimum CIBIL Score for SBI Home Loan

SBI evaluates your financial discipline based on the CIBIL Score. If the CIBIL Score is high, it indicates efficient management of loan repayments and judicial use of credit limits. Individuals with a high credit score are preferred as they are classified as low-risk borrowers with an assurance of repayment of the loan availed of. Such borrowers will be given the benefit of a low-interest rate,

The minimum CIBIL Score for SBI Home Loan will be 650 and above. Applicants who do not comply with the SBI Home Loan CIBIL Score criterion will also be considered if all other factors like income, employment and the security offered are satisfactory. The rate of interest for loans to borrowers with a credit score lower than the minimum level will be higher.

You can do a free CIBIL Score check by filling an application available on the official website of the bank with basic details like Name, Date of birth, Contact address, Mobile Number and PAN Number.

Also Check: Cibil Score for Home Loan

How SBI Calculates CIBIL Score for Home Loan?

SBI does not calculate CIBIL Score but evaluates the creditworthiness and financial discipline of the applicant based on the information available in the CIBIL credit report. The credit report gives extensive information about your past loans, payment history, types of loans availed and credit card limit utilisation level. There are various factors that affect the CIBIL Score, and each factor has a weightage depending on its importance and impact on the future credit.

The credit rating in India is done by TransUnion CIBIL, Experian, Equifax and CRIF. The rating by TransUnion CIBIL is the most popular of all, and all the top financial institutions rely on CIBIL Score for evaluation of the applicant. 

The comprehensive CIBIL Score is based on the weightage attached to the following parameters.

  • Repayment History: The maximum weightage is given to the loan repayment behaviour and constitutes 30% of the CIBIL score calculation.
     
  • Credit Utilisation: The extent of credit utilisation shows your dependence on credit for your sustenance. The weightage attached for credit utilisation is 25% of the CIBIL score calculation.
     
  • Type of credit: The combination of loans availed, i.e., the number of secured and unsecured loans, plays a very important role in assessing your creditworthiness. 25% of the CIBIL score calculation is the weighage attached to this factor.

Credit Enquiries: 20% of the CIBIL score calculation is the weightage attached for credit enquiries. Multiple enquiries in a short span will have a negative impact as it portrays your desperation for credit.

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CIBIL Score Range for SBI Home Loan

Home loans are provided against the mortgage of the asset created out of the loan. Since the loan is secured by mortgage of property and the risk attached is low, the CIBIL Score range will be much lower than the minimum score required for personal loans.

The SBI Home Loan CIBIL score range will be 650 to 750 and above. Apart from the CIBIL Score, there are other aspects like the location of the property, valuation of the property, income, employment, etc., that will be considered for appraising the loan application. 

The loan application will not be rejected solely on the basis of non-compliance with the minimum CIBIL Score criterion. If all the other parameters are satisfactory, the loan application may still be considered favourably, but the rate of interest applied will be higher.

Additional Reading: How to get urgent loans for bad credit?

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Importance of CIBIL Score for SBI Home Loan

SBI does a thorough appraisal of the home loan application in order to ascertain the creditworthiness and reliability of the prospective borrower. This exercise is done with the sole intention of creating a good asset with ensured recovery till the entire liability is cleared. 

SBI Home Loan CIBIL Report is one such tool that will provide information about the applicant’s credit history, repayment behaviour and credit utilisation. . Financial Institutions provide periodical credit and personal information of their customers to the Credit Bureau, which will be collated into the credit report. The Credit Report will have a month on month record of the loan availed and repayment pattern for the last three years. CIBIL Score will be based on the information available in the credit report of the individual. 

It is highly essential to give prime importance to the SBI Home Loan CIBIL Score in order to maintain the health of the loan provided till the maturity of the loan account. The minimum CIBIL Score for Home Loan in SBI is 650.

CIBIL Score Range to Avail Other Loans Offered by SBI

The CIBIL Score Range stipulated differs for secured and unsecured loans. While the good credit score range for SBI Home Loans is 650 to 750, the required CIBIL Score for Personal Loan, Car Loans and Business Loans is 750 and above.

CIBIL Score Required for SBI Credit Card

CIBIL Score plays an important role as the approval of the SBI Credit Card application will be based on the CIBIL Score. The ideal CIBIL score for credit card stipulated by SBI is 750. The mounting instances of credit card default and frauds off late have prompted the lending institution to rely on the CIBIL Score and assess the creditworthiness and repayment capacity based on the information provided in the Credit Report. So SBI has stipulated a minimum CIBIL score for credit cards.

A CIBIL Score of 750 is considered good, and the prospective credit cardholder is categorised as a low-risk borrower with a good repayment capacity and repayment history. This does not mean that any credit card application from an individual with a CIBIL Score lower than 750 will be rejected. A thorough background check will be done, and once convinced about the credibility of the applicant, the credit card will be issued but with a lower limit. The credit cardholder can now work towards improving the credit score by paying off the credit card dues on time and by utilising the limit with prudence.

Additional Reading: Cibil Customer Care Number

Benefits of High CIBIL Score to Avail SBI Home Loan

A high CIBIL Score depicts robust financial health, and the lenders will be every ready to extend loan facilities to applicants with a high CIBIL Score. SBI provides various benefits for home loans to applicants with a high CIBIL Score.  

  • The interest rate on SBI Home Loans is based on the CIBIL Score. The higher the CIBIL Score, the lower will be the interest rate and vice versa.
  • The turnaround time for the loan approval will be minimised.
  • Applicants with a high CIBIL Score will be eligible for a higher loan amount. 
  • Can negotiate for better SBI Home Loan terms.

Additional Reading: What is CRIF cibil score?

FAQs

✅What is the minimum CIBIL score for an SBI home loan?

SBI evaluates the repayment capacity and credibility of the applicant based on the information available in the credit report and the CIBIL score awarded. Applicants with a higher CIBIL Score are considered low-risk borrowers and are most sought after. With the mounting default levels in loan accounts, the lenders have become wary of high-risk borrowers, and so is SBI. The minimum CIBIL Score for Home Loan in SBI is 650. A good credit score range considered for SBI Home Loan is 650 to 750.

✅Does SBI check CIBIL score?

The first step that SBI takes on receiving a loan application is drawing a credit report to ensure the CIBIL Score. SBI not only checks the CIBIL Score of the primary applicant but also the credit score of the co-borrower before conveying the approval of the loan application. The reason is, the home loan quantum will be arrived at considering the income of both the primary applicant and the co-applicant, and both are equally responsible for the prompt repayment of the loan.

✅How can I increase my CIBIL score in SBI?

How to increase the CIBIL Score is a constant concern for many of us. A periodical CIBIL Score check is essential to assess your eligibility for credit whenever required. If you notice deterioration in the score, then you can improve the score by

  • Clearing the overdue in the loan accounts and credit card dues
  • Reducing the number of loans by closing the loan account nearing the maturity date.
  • Minimizing utilization of credit limit.
  • Avoiding multiple loan enquiries.

✅How much loan can I get on 35000 salaries?

The quantum of the loan depends on the income, employment, debt to income ratio, type of property, cost of construction, CIBIL score, location of the property, the value of the property etc. To get a quote, you can either provide the required information by accessing the official website of the branch or visit the branch and interact with the concerned official to get the required information,

✅Is a CIBIL score required for an SBI home loan?

The approval or rejection of the SBI Home Loan is based on the CIBIL Score. So it is essential to comply with the stipulated minimum CIBIL score for home loan in SBI. The financial health and the repayment capacity is drawn from the information provided in the credit report and the CIBIL score awarded. So it is essential to have a good CIBIL Score for approval of the SBI Home Loan application. 

✅Does CIBIL score affect home loan interest rate?

Yes, the interest rate for a home loan is applied in accordance with the CIBIL Score. The higher the CIBIL Score, the lower will be the interest rate and the lower the CIBIL Score, the higher will be the CIBIL Score. Having a high CIBIL Score will provide you with the option to negotiate for further interest concession.

✅What are the advantages of the CIBIL score?

CIBIL Scores provides the advantage of assessing the financial health and the repayment behaviour of the borrower. A prospective borrower with a high CIBIL Score will carry the reputation of being disciplined with the credit availed and will be preferred by the lenders. 

With the CIBIL Score, the individuals have the advantage of assessing access to credit facilities whenever required. If the credit score is below the required level, then it can be improved by making repayment of the EMIs promptly and reducing the credit card usage limit.