Interest rates

SBI home loan interest rates change from June 1st. Your CIBIL score matters, here’s why

State Bank of India (SBI) Home Loan Interest Rates: This public sector lending giant has raised its interest rates on home loans for various tenors from June 1. The SBI raised its external benchmark rate (EBLR) by 40 basis points to 7.05% plus CRP, while the repo-linked lending rate (RLLR) rose to 6.65% plus CRP.

However, to qualify for the lowest interest rate at SBI, your CIBIL score is important. The lower your credit score, the higher the interest rate charged on your home loans and vice versa.

In general terms, a credit score is essential for loan approvals. These are three-digit dashboards that give a clear view of a borrower’s credit health. In particular, the CIBIL score gives a view of how a borrower manages their credit, while showing the ability of borrowers to take out loans and repay them.

On regular SBI home loans, for a credit score of 800 or higher, the interest rate will be lowest at 7.05% with a maximum gain of 7.45%.

Between 750 and 799 credit scores, the interest rate is 7.15%, while on credit scores 700 to 749, the interest rate is 7.25%.

For credit scores 650 to 699, the interest rate will be 7.35%, while for credit scores 550 to 649, the rate is 7.55%. For the NTC/non-target score, the interest rate is 7.25%.

With the exception of a CIBIL score greater than or equal to 800, the maximum payout from regular home loans is the same as the interest rate.

Here are other key features to note when using SBI home loans:

SBI offers a 5 basis point concession to female borrowers subject to a minimum EBR i.e. 7.05%.

In addition, a 10 basis point premium applies to the card rate for loans up to 30 lakh for an LTV greater than 80% and less than or equal to 90%.

Meanwhile, top-up lending is not allowed under the overdraft category for the loans below 20 lakh and above 2 crore.

The maximum gain only applies to “ready to move in” properties.

Notably, concession of 5 basis points under Privilege & Shaurya home loans and Apon Ghar home loans if maintaining a salary account with SBI as part of the salary package.

Finally, the interest rate on the Topup/Suraksha loan should not be less than the rate of interest charges on the underlying home loan.

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