Check Free CIBIL Score for SBI Loans

Lending institutions thoroughly check your detailed credit report when you apply for a loan or credit card. When SBI requests your credit report from a credit bureau, such as CIBIL, to assess your creditworthiness against your loan or credit card application, it is considered a hard enquiry. It is mentioned in your credit report and may impact your score temporarily. Based on your present CIBIL score and CIBIL report, SBI shall approve or deny your loan or credit card application.

Minimum CIBIL Score Required for SBI Home Loan

• SBI checks the credit score and credit report of primary applicants, as well as co-applicants (if any), before approving any home loan application.
• SBI has not specified any minimum CIBIL score for SBI home loan approval.
• It should, however, be worth noting that the higher your CIBIL score, the better your chances of getting loan approval.
• This is because a high CIBIL score (760+) or as close to 900 implies that the applicant has a good track record of making timely repayments of loans or credit card EMIs, thus assuring the bank that the loan will be repaid in time.
• SBI uses an applicant’s credit score to fix the home loan interest rate, over and above the benchmark rate.
• The bank may also lower the home loan interest rates and provide better loan terms to applicants with a high credit score.
• In case of a home loan, if the applicant defaults on loan repayment, the co-applicant becomes responsible for repaying the loan on time.
• In case of any non-payment or delay in loan EMIs, the credit scores of both applicants are affected equally.
• You should ensure that the combined credit score of both applicants meets the eligibility criteria before applying for an SBI home loan.
• If in case of loan approval, your CIBIL score for SBI home loan is low, then try to improve the score to increase the chances of loan approval.

Must Read: What should be the minimum CIBIL score for a home loan?

CIBIL Score Required for SBI Personal Loan

• A personal loan is an unsecured loan in which the borrower does not have to submit any collateral/security to the bank.
• As there is no collateral/security involved, banks/NBFCs are at high risk when approving loan applications.
• Your credit score for SBI personal loans acts as an evaluation criterion that the bank uses to judge your creditworthiness and repayment history.
• In case borrowers fail to repay the loan in time, they are penalised heavily and their CIBIL score plunges, making them almost ineligible for availing credit products in future.
• This also acts as a deterrent for borrowers and motivates them to repay the loan on time.
• Timely loan payments are mandatory, as they help in building the credit score significantly.
• In the case of SBI personal loans, a CIBIL score of 760 and above is considered good for loan approval.
• It is worth mentioning that SBI rarely specifies the exact CIBIL score range for loan approvals.
• This is largely because each application is different, and the approval depends on a lot of other factors as well.
• As the risk is higher in the case of SBI personal loans, the bank prefers applicants with a higher CIBIL score.
• Even if you have a CIBIL score of 700-760, you stand a very good chance of loan approval, provided other factors are fulfilled.

Note: The loan approval or denial shall be at the sole discretion of SBI, even after having a high credit score.

Also Read: What should be the minimum CIBIL score to get a personal loan?

Factors that Affect the SBI CIBIL Score

Several factors affect your credit score, especially the CIBIL score. These are stated below:

• Unresolved errors in your CIBIL report
• Delayed or missed loan EMIs or credit card dues
• Paying only the minimum due amount
• Settling the existing credit account instead of closing it
• Applying for multiple credit products in a short duration
• Length of your credit history
• Any outstanding debt, etc.

How SBI Interprets Your Creditworthiness using CIBIL Score

• If you have a high CIBIL score, it means that you have managed your credit efficiently in the past and have maintained disciplined credit behaviour.
• When evaluating the creditworthiness, you would be considered a low-risk borrower and thus are a preferred prospect for the bank.
• The bank would, therefore, ideally offer you the loan at relatively lower interest rates and may approve the application quickly.
• In case your CIBIL score is low and is deteriorating continuously, it means that you have not managed your finances well and can be a risky proposition for the bank.
• Your creditworthiness, in such cases, would be very low, and there are chances that you might default on the loan.
• SBI would not want to sanction your loan application if it assesses that you may not be able to repay the loan on time.
• The bank, therefore, either rejects your application or offers you the loan at high interest rates and stringent loan terms.
• It, however, does not necessarily mean that a person with a low CIBIL score will default for sure, and a person with a high CIBIL score cannot default on the EMI payment.
• A credit score helps SBI segregate potentially good borrowers from not-so-good ones.
• In case you have a CIBIL score less than 760, you can start rebuilding it from today onwards so that it is above 760 when you apply for a loan with SBI.

Also Know: How can I know my CIBIL Score through PAN card?

FAQs on CIBIL Score for SBI Loans

Q. What is the minimum CIBIL score for personal loans or home loans in SBI?

Ans. There are no minimum CIBIL score criteria for personal loans or home loans, as defined by SBI. The higher your CIBIL score is, the higher the chances of personal loan or home loan approval. However, you should maintain it at least 700 or above to avail funds at ease.

Primarily, you need to check and clear the eligibility criteria set by SBI before applying for a home loan or personal loan. Afterwards, you may check for the minimum CIBIL score required for a particular loan type.

Q. How can I increase my CIBIL score for SBI loan?

Ans. To increase your CIBIL score for SBI loan, you need to pay all your dues on time, maintain good payment history, maintain a healthy mix of credit, avoid being a guarantor or co-applicant for someone who has a history of defaulting and maintain a credit utilisation ratio below 30% of the total sanctioned limit.

Q. My CIBIL score is 650. Will my SBI home loan application be approved?

Ans. With a CIBIL Score as low as 650, the chances of getting an SBI Home Loan are low. You should take steps to increase it and make it at least 700 or above to improve the chances of approving the SBI home loan.

Q. Is CIBIL score mandatory for SBI loan application?

Ans. SBI does not specify whether it approves loans only on the basis of the CIBIL score. It may also consider the credit score from other credit bureaus to approve your credit application. However, CIBIL Score is preferred by most lenders, so it is suggested to maintain a high CIBIL score for SBI loans as well.

Q. Will the settlement of personal loans affect your CIBIL score?

Ans. Yes, once your loan is marked as settled in your credit report, it will surely lower your CIBIL score.

Loan settlement is considered negative credit behaviour, so any personal loan settlement should be avoided to maintain a decent SBI CIBIL score for personal loans.

Q. Can I get more than 3 SBI personal loans if I have a good CIBIL score?

Ans. Multiple loan applications should be avoided in a short duration, as it depicts your credit-hungry behaviour. Even if you maintain a good CIBIL score, the possibility of sanctioning 3 different SBI personal loans could be less.

You may avail a single SBI personal loan with the maximum loan amount to meet your urgent cash requirements.

Q. I have missed my SBI home loan EMI. Will it impact my CIBIL score?

Ans. If you missed the SBI home loan EMI, it will be considered a default and impact your credit score. However, you can recover from its impact by taking corrective measures, such as ensuring that you pay off the missed EMI on the next due date and the delayed payment doesn’t occur again. To maintain a good credit score, you must clear all your dues on time.

Q. My application for SBI personal loan was rejected due to a low credit score. How can I improve my credit score?

Ans. There are various ways through which you can improve your credit score, such as:

• By making timely payment of your loan and credit card EMIs
• Regularly checking errors in your credit report and, if found, getting them rectified
• Maintaining a healthy credit mix of different types of credit products, like credit cards, personal loans, home loans, etc.
• Getting a secured card and using it responsibly
• By not applying for new credit products in a short duration

Q. How to check CIBIL score in the YONO SBI app?

Ans. As of now, there is no option to check CIBIL score through the YONO SBI app. You can visit the bank’s branch directly for more information.

Q. What are the ways to check your CIBIL score?

Ans. Here, you can check your CIBIL score online and check your CIBIL report free of cost. You just need to mention your basic details, such as your full name, gender, date of birth, PAN card, PIN code, email address, and mobile number.

You also have an option of receiving regular updates via WhatsApp, absolutely free. The second option is to visit the official CIBIL website and request your CIBIL report, which is a paid service with inherited costs.

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