SBI Announces Festive Season Discounts on Home Loan Interest Rates.

As the festive season approaches, the State Bank of India (SBI), the country’s premier lender, has launched an enticing offer for home loan borrowers. Under this special campaign, SBI is extending discounts of up to 65 basis points (bps) on home loan interest rates. This exclusive offer on home loans will be available until December 31, 2023.

The quantum of these discounts is contingent upon the borrower’s CIBIL score.

A CIBIL Score is a numeric representation consisting of three digits, reflecting an individual’s credit history. It is calculated using credit history data gathered in the CIBIL Report (Credit Information Report), which encompasses an individual’s credit payment history across various loan types and credit institutions over time.

The CIBIL score acts as the initial impression for lenders, with higher scores enhancing the prospects of loan application review and approval. However, it’s crucial to note that the ultimate decision to approve a loan or a credit card application rests solely with the bank, and CIBIL doesn’t wield influence over this determination.

CIBIL scores fall within a range of 300 to 900, with scores above 700 generally considered favorable. The closer your score is to 900, the stronger your credit rating.

SBI has structured the discounts based on the borrower’s CIBIL score as follows:

• CIBIL score of 101-150: No discount is applied, with the effective home loan interest rate remaining at 9.45 percent.
• CIBIL score of 151-200: SBI offers a discount of 65 bps during the promotional period, leading to an effective rate of 8.7 percent.
• CIBIL score of 550-599: No discounts are available within this score range, resulting in an effective rate of either 9.45 percent or 9.65 percent.
• CIBIL score of 700-749: SBI extends a discount of 65 bps during the promotional period, thereby reducing the effective rate to 8.7 percent.
• CIBIL score of 750-800: For those with scores ranging from 750-800 and beyond, the home loan interest rate during the offer period is 8.60 percent, with a concession of 55 bps.

In addition to these concessions, borrowers with a CIBIL score of 700 and above can also receive basis point (bps) discounts on home loan takeovers, resale properties, and ready-to-move properties. For builder tie-up projects, an additional 5 bps concession is available on top of the aforementioned rates.

For SBI’s Shaurya, Shaurya Flexi, and Shaurya Flexi Vishisht Products, an extra discount of 10 bps is applicable over the campaign rates during the offer period.

It’s worth noting that the campaign rates outlined above already include interest concessions for women borrowers and concessions incorporated into the card rate.

• A premium of 10 bps is applicable for loans up to 30 lakhs when the Loan to Value (LTV) ratio exceeds 80 percent but is less than or equal to 90 percent.
• A 5 bps concession on card rates is accessible for MaxGain & Realty loans for borrowers boasting a CIBIL Score of 750 or higher.