Why do you need a good CIBIL score to apply for SBI home loan?
There are several reasons why a good CIBIL score is an advantage for SBI home loan:
- A good CIBIL score above 750 will ensure that your home loan is approved quickly without any hassles.
- A good CIBIL score might get you lesser interest rates.
- More loan choices.
- Opportunity to negotiate.
Credit Information Bureau Limited (CIBIL) is an Indian credit information company that records an individual’s credit history pertaining to loans and credit cards. CIBIL extracts this information from member banks and credit institutions and creates a CIBIL score for that particular individual based on their credit history.
CIBIL scores are calculated based on various factors such as one’s payment history, number and type of loan accounts, length of one’s credit history, outstanding debt and many other factors. CIBIL scores play a very important role in India’s financial system and help consumers secure credit quicker and also help loan providers manage their business better.
Factors affecting CIBIL scores
A lot of factors come into play while deciding a CIBIL score. Listed below are some of the factors that affect CIBIL scores.
Late payments: If you have delayed payments on your existing loans over the last couple of years, chances are that your credit score will be negatively affected.
Higher percentage of credit cards or home loans: A higher concentration of unsecured loans will not help your credit score.
Misuse of credit limits: Increased spending on your credit cards will not affect your score negatively but overshooting the balance on the card over time will.
CIBIL score for Home Loan
Home loans are granted for individuals to purchase or build a house. The property is mortgaged to the lender until the loan is repaid completely. Besides your eligibility and ability to repay the loan, CIBIL scores are one of the most important parameters considered by lenders while granting home loans. A good credit score will ensure you get approved for a new housing loan without any hassles. Banks and credit institutions use information gained from CIBIL scores to determine if the applicant is eligible and reliable enough to avail the loan.
SBI Home Loan
State Bank of India is an Indian public sector bank and financial service company. It has a 20% market share in loans and deposits among Indian commercial banks. SBI offers a range of personal loans, home loans, auto loans and other kind of loans.
SBI offers home loans at attractive interest rates. It has different home loan plans to suit the needs of its customers. Listed below are the home loan plans offered by SBI.
|Home Loan Plan||Minimum Amount||Maximum Amount|
|SBI Maxgain||Rs.10 Lakh||No cap|
|SBI Yuva home loan||20% higher loan amount than the normal home loan amount.||No cap|
|SBI NRI home loan||Rs.3 lakh||No cap|
|SBI Realty home loan||N/A||Up to Rs.10 crore|
|SBI Pal home loan||Rs.10 lakh||N/A|
|SBI Tribal Plus home loan||Nil||Rs.10 lakh|
|SBI Gram Niwas home loan||Nil||Rs.5 lakh|
|SBI Sahyog Niwas home loan||N/A||Rs.50,000 per member|
Documents required for SBI home loan
- Proof of identity
- 3 passport size photograph
- Proof of residence
- Bank account statement
- Completed loan application
- Property tax receipt
- Personal Assets statement
- IT PAN card
- Original salary certificate from employer
- TDS certificate on Form 16
Benefits of SBI Home Loan
There are a lot of reasons to choose an SBI Home loan. Listed below are some of the benefits.
- Attractive interest rates.
- Loan amounts up to Rs.10 crore.
- Home loans for rural residents.
- Home loan for NRIs.
- Easy loan approval process.
- Easy documentation.
It is very important to maintain a good CIBIL score to ensure that you can avail the SBI home loan without any complications and enjoy the benefits offered by SBI home loan.