SBI offers special discounts on home loan rates as festive season kicks in

With the festival season kicking in, State Bank of India (SBI) has begun offering lucrative home loan discounts. Under a unique campaign for home loan borrowers, India's top lender is offering concessions of up to 65 basis points (bps). 

The last date for the concession on home loans is 31 December 2023.

 The concessions are based on the CIBIL score.

CIBIL Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report). A CIR is an individual's credit payment history across loan types and credit institutions over a period of time.

The CIBIL score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved. The decision to lend is solely dependent on the bank and CIBIL does not in any manner decide if the loan/credit card should be sanctioned or not.

Your CIBIL score, calculated based on your credit behaviour as reflected in the ‘Accounts’ and ‘Enquiries’ section of your CIR, ranges between 300-900. A score above 700 is generally considered good.  The closer your score is to 900, the better your credit rating is.

How SBI has distributed discount per cent based on the Cibil score: 

101-150 CIBIL score: For those who come under this range, the bank is not offering any discount, the effective home loan interest rate is 9.45 per cent.

151-200 CIBIL score: SBI is offering a discount of 65 bps during the offer period and the effective rate in the period stands at 8.7 per cent.

550-599 CIBIL score: The bank is not offering any discount at this score. The effective rate is 9.45 per cent and 9.65 per cent.

700-749 CIBIL score: SBI is offering a discount of 65 bps during the offer period and the effective rate is 8.7 per cent.

750-800 CIBIL score: For CIBIL score ranging between 750-800 and above, the home loan interest during the offer period is 8.60 per cent with a concession of 55 bps.

In addition to these concessions, one with a CIBIL score of 700 and above can also get a bps discount in case of home loan takeovers, resale and ready-to-move properties. For builder tie-up projects, a 5 bps additional concession is offered over the above-proposed rates.

For Shaurya, Shaurya Flexi and Shaurya Flexi Vishisht Products, SBI is offering an additional concession of 10 bps over the above campaign rates during the offer period.

The above campaign rates are inclusive of interest concessions available to women borrowers and concessions available at the product level (i.e.. Concessions built into the card rate).

-A premium of 10 bps for loans up to 30 lakh for LTV >80% & < =90% shall continue.

-5 bps concession on card rates for MaxGain & Realty loans for borrowers with CIBIL Score greater than or equal to 750.