In order to get a home loan from SBI, borrowers need to have an excellent credit score. The minimum CIBIL score required to qualify for an SBI loan is 650. However, a good CIBIL score of 750 or above will ensure that your loan is approved quickly and without any hassles.
Here in this article, we’ll take a look at why CIBIL scores are important for SBI loans, what are the factors affecting CIBIL score and many more.
Why is your CIBIL score important for SBI Home Loan?
Individuals who wish to buy a home or build one usually apply for home loans. Home loans are secured loans where the house acts as the collateral with SBI till the time the borrowed amount is paid back in full as per the agreed terms & conditions of the loan agreement.
Now, while approving one’s home loan application SBI evaluates several factors and one of the most important ones among them is CIBIL score. As already mentioned, having a good CIBIL score will ensure that you secure a home loan easily without facing any kind of obstructions. Apart from that, SBI will go through your entire credit report inclusive of your past loans, repayment history, etc.
What are the documents required for SBI Home Loan?
Below is a list of a few documents required for SBI Home Loan.
Why should I opt for an SBI Home Loan?
There are a number of reasons why you should go for an SBI Home Loan. Here are a few.
What are the benefits of having a good CIBIL score?
Here are a few benefits of having a good CIBIL score.
Missed or Delayed payments
If your credit report holds a record of missed payment or delayed payment, it can leave a negative impact on your CIBIL score. Consequently, your chance of getting approved for an SBI Home Loan also reduces.
Poor Credit Utilization Ratio
If you are overusing or exhausting your available credit limit, your CIBIL sore is likely to suffer. So always aim at keeping your credit utilization ratio at 30% to show that you’re a responsible borrower and attract lower interest rates on SBI Home Loans.
Too many unsecured loans
If you have too many unsecured loans as compared to secured loans, you will face much difficulty in raising your CIBIL score. Therefore, it is crucial to maintain a good balance between the number of unsecured loans and secured loans.
Having multiple loans at one time denotes hungry behavior, which is again considered to be a major red flag for lenders. This further reduces your chances of getting approved for SBI Home Loans.
CIBIL score is one of the major criteria evaluated by SBI and various other banks to determine the borrower’s creditworthiness and financial capability.
Frequently Asked Questions
The minimum CIBIL score required to acquire SBI Home Loan is 650. Additionally, there are various other factors that affect the eligibility for a home loan. They are:
Yes, your CIBIL score can impact your eligibility for a home loan. If you have a good CIBIL score, your chances of getting approved for a loan naturally increases. However, if you have a weak or poor CIBIL score, then even if you get approved for the loan, you may not attract reasonable interest rates or flexible home loan tenure.
Having too many unsecured loans can negatively impact your credit score since these kinds of loans have higher interest rates as compared to other loan categories.
An SBI Home Loan comes with several perks. They are:
Even a single delayed payment can hurt your CIBIL score. Furthermore, banks may not approve your loan application and even reduce your credit card limits.