SBI is offering up to 65 bps discount on home loans to certain borrowers, check your eligibility

The State Bank of India (SBI) has recently announced discounts on its home loan interest rates. The largest public sector bank of the country has initiated a special campaign for home buyers and is offering a discount of up to 65 basis points (bps) on the interest rate. The bank's official website mentions that the last date for availing these concessions is December 31, 2023.

However, all the home loan applicants will not be eligible for this discount as the new interest rates will be offered based on CIBIL score or credit score.

Who is eligible for SBI's discount on home loan?

The CIBIL score or credit score refers to a three-digit numeric summary of your financial history based on your borrowings. It is based on how diligent you were in repaying the loans and if there were any defaults at your end. The score ranges between 300 and 900 and anything below 550 is considered to be a dissatisfactory CIBIL score.

As the CIBIL score is the primary consideration for availing discounts on home loans offered by SBI, it’s important for borrowers to have a good credit score.  The borrowers with higher credit scores will be eligible for discounted interest rates on home loans.

SBI home loan discounts for different CIBIL scores

During the offer period, SBI is going to provide loans at 8.60 per cent per annum for those who have a CIBIL score ranging from 750 and 800 and above, which indicates a concession of 55 bps from the original rates.

The bank is offering 8.7 per cent interest rate for home loans for the borrowers with a CIBIL score of 700 to 749, indicating a discount of 65 bps. However, the home loan applicants with a credit score ranging between 550 and 699 aren't eligible for any discounts and the home loan interest rate for them is 9.45 to 9.65 per cent.

The SBI is also providing concessions to ones with a low CIBIL score as people with a score ranging between 151 and 200 can get a home loan at 8.7 per cent. However, applicants with a CIBIL score of 101 to 150 aren't eligible for any discount and the effective home loan interest rate is 9.45 per cent.

In addition to these concessions, one with a CIBIL score of 700 and above can get a 20 bps discount in case of home loan takeovers, resale and ready-to-move properties.

Further, builder tie-up projects get an additional concession of 5 bps. Also, availing home loans under the special product schemes by SBI, such as Shaurya, Shaurya Flexi, Shaurya Flexi Vishisht would allow you to get a discount of 10 bps in addition to the aforementioned rates. All the above-mentioned discounts are inclusive of already available concessions for women and discounts offered for different products.