While applying for a loan or credit card, lending institutions perform a thorough check of the applicant’s detailed credit report. The credit report request from the credit bureau by the lender is termed as a hard enquiry, as it affects the applicant’s credit score. Therefore, if you plan to apply for a SBI home loan or personal loan, the bank will request and fetch your CIBIL report from India’s leading credit bureau named as TransUnion CIBIL. Based on your present status of CIBIL report and CIBIL score, SBI shall approve or deny your credit 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. However, SBI has not specified any minimum CIBIL score for SBI home loan approval, as higher you CIBIL score, the better will be your chances of getting loan approval. This is because a high credit score (750+) 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.
Moreover, following the RBI guidelines, SBI uses an applicant’s credit score to fix home loan interest rate, over and above the benchmark rate. So, with a high credit score, the bank may also lower the home loan interest rates and provide better loan terms.
In the case of home loan, if the applicant defaults on loan repayment, the co-applicant is solely responsible to repay loan on time. Due to any non-payment or delay in loan EMIs, the credit score of both the applicants affects equally. Therefore, make sure that the combined credit score of both the applicants meets the eligibility criteria before applying for SBI home loan. If in case of loan approval, if your SBI Home Loan CIBIL Score is low, then try to improve to increase the chances of loan approval.
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CIBIL Score Required for SBI Personal Loan
Personal loan is an unsecured loan in which the borrower does not have to submit any collateral/security with the bank. As there is no collateral/security involved, banks/NBFCs are at high risk when approving the loan application. Your SBI credit score for personal loan acts as evaluating criteria that the bank uses to judge your creditworthiness and repayment history.
In case borrowers fails to repay the loan in time, they are penalised heavily and their 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. Therefore, timely loan payments are beneficial, as it helps in building the credit score significantly.
In case of SBI personal loans, a CIBIL score of 750 and above is considered 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. Even if you have a CIBIL score of (700-750) or as close to 900, 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 the SBI.