For The Home Loan Of Your Dreams, There’s a Magic Number
Three ways in which a high CIBIL score works to your advantage when you submit a home loan application are:
- Your application for a loan is approved faster and without any hassle if you have a CIBIL score 750 or above
- The lender may agree to charge a lower-than-normal interest rate if your CIBIL score is high (Even a small reduction in the interest rate amounts to considerable savings over a period of time)
- You have more options to choose from
CIBIL records data related to individuals and companies about their repayment history and credit record. Lenders provide this information to CIBIL on a regular basis.
On basis of the information that comes to CIBIL, the CIBIL credit score, a three digit number ranging from 300-900 is calculated. Various factors are taken into account, like number and types of loans taken, total outstanding debt, repayment history, etc., for assigning a CIBL score to someone.
Lenders consider your CIBIL score, and other information listed in your CIBIL report, when evaluating your loan application. A good score is often the difference between approval and rejection of a loan.
Some key factors that affect your CIBIL score
Many factors affect credit score, the three very important ones being the following:
- Late Payments: Delayed payments, especially if they have been in the recent past, affects your CIBIL score severely.
- A skewed unsecured to secured loan ratio: The more unsecured loans you have than secured loans, the greater its negative impact on the CIBIL score.
- Higher credit utilization: What percentage of total credit available you use also affects your CIBIL score. Your CIBIL score takes a hit if your credit utilization is 60% or more.
CIBIL Score and Home Loan
In addition to your eligibility for your loan, banks also check your CIBIL score. For this purpose, lenders contact CIBIL, and depending on your score and some other parameters, the bank may or may not process your home loan request.
SBI Home Loan
|Name of Plan||Min Amount||Max Amount|
|SBI Yuva home loan||The loan amount is 20 percent higher than loan amount of regular home loan||There’s no maximum amount|
|SBI Maxgain||INR 10 Lakh||There’s no maximum amount|
|SBI NRI home loan||INR 3 Lakh||There’s no maximum amount|
|SBI Realty home loan||There’s no minimum amount||INR 10 crore|
|SBI Tribal Plus home loan||There’s no minimum amount||INR 10 Lakh|
|SBI Pal home loan||INR 10 Lakh||There’s no maximum amount|
|SBI Sahyog Niwas home loan||There’s no minimum amount||INR 50,000 for each member|
|SBI Graham Niwas home loan||There’s no minimum amount||INR 5 Lakh|