Check Free CIBIL Score for SBI Loans

When you apply for a loan, the lender carries out a hard enquiry and fetches your credit score with detailed credit report. In case you apply for a loan from SBI, the country’s largest lender, it will request your credit report from a credit bureau, probably CIBIL, which is the biggest and the oldest credit bureau operating in India.

Based on your CIBIL score, SBI will decide if it should approve your loan application or not. However, a number of other factors will also be considered before approving your application.

Banks fetch the credit score to gauge your creditworthiness and evaluate the risk of lending you the money.

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

CIBIL Score for SBI Personal Loan

A personal loan is an unsecured loan and the borrower does not have to provide collateral for it. As there is no security involved, banks are at high risk when approving the loan application. Your CIBIL score acts as evaluating criteria that the bank uses to judge your worthiness. 

In case an applicant fails to repay the loan, he is penalised heavily and his CIBIL score takes a deep plunge making him almost ineligible for credit products in the future. This also acts as a deterrent for borrowers and they try their best to repay the loan on time. 

Timely payments also can be beneficial as timely repayment helps in building the credit score significantly. 

In case of SBI personal loans, a CIBIL score of 760 and above is considered very good for loan approval. However, 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 more in case of SBI personal loans, the bank prefers applicants with a higher CIBIL score. If you have a CIBIL score of more than 800, you stand a very good chance of quick loan approval provided other factors are fulfilled.

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

How does SBI interpret your creditworthiness using the CIBIL score?

If you have a high credit score, it means that you have managed your credit very well in the past and are disciplined in handling credit products. When evaluating the creditworthiness, you would fall under the low-risk segment and thus are a preferred borrower for the bank. The bank would, therefore, ideally offer you the loan at relatively lower interest rates and 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 is of the opinion that you may not be able to repay the loan. It would, therefore, either reject your application or offer you the loan at high-interest rates.

In the End

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. But, credit score helps lenders in segregating potentially good borrowers from not-so-good ones. In case you have CIBIL score less than 750, you can start rebuilding it from today onwards so that it is above 750 when you actually apply for a loan.

FAQs

Q. My CIBIL Score is 350. Will my SBI Home Loan Application be approved?

Ans. With a CIBIL Score as low as 350, chances of getting SBI Home Loan are very low.

Q. What is the password to open CIBIL Score PDF?

Ans. The default password to open your credit report PDF containing your CIBIL score is your date of birth in DDMMYYYY format.

Q. Is CIBIL Score mandatory for SBI Loan application?

Ans. Yes, CIBIL Score is mandatory for SBI Loan application. It works as the first screening of your credit profile for the lender. The higher the score, the better are your chances of the loan being reviewed and approved.

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

Ans. If you missed SBI home loan EMI within 90 days of the last payment, it will be considered as a minor default. 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 late payment doesn’t happen 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 loan, home loan, etc.
• Getting a secured card and using it responsibly

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