SBI home loan interest rates change from June 1. Your CIBIL score matters, here’s why

State Bank of India (SBI) home loan interest rates: This public sector lending giant has increased its home loan interest rates for various tenures from June 1. SBI hiked its external benchmark lending rate (EBLR) by 40 basis points to 7.05% plus CRP, while the repo rate linked lending rate (RLLR) has risen to 6.65% plus CRP.

However, to avail of the lowest interest rate at SBI, your CIBIL score matters. The lower your credit score is, the higher will be the interest rate charged on your home loans and vice versa.

In general terms, a credit score is critical for loan approvals. They are three-digit scoreboard that provides a clear view of a borrowers' health in terms of credits. Notably, the CIBIL score gives a view of how well a borrower manages his or her credit, while also showing the ability of the borrowers to opt for loans and repay them.

Under SBI's regular home loans, for a credit score above or equal to 800 - the interest rate will be lowest at 7.05% with a max gain of 7.45%.

Between 750 - 799 credit scores, the interest rate is 7.15%, while on 700-749 credit scores - the interest rate is 7.25%.

For credit scores 650-699, the interest rate will be 7.35%, whereas on credit scores of 550-649 - the rate is 7.55%. For NTC/ no cibil score, the interest rate is 7.25%.

Except for CIBIL score of above or equal to 800, the max gain in regular home loans is the same as the interest rate.

Here are other key features to note while availing of SBI home loans:

SBI offers 5 basis points concession to women borrowers subject to minimum EBR i.e. 7.05%.

Further, a premium of 10 basis points applies to the card rate for loans up to ₹30 lakh for LTV greater than 80% and less than or equal to 90%.

Meanwhile, the top-up loan is not permitted under the overdraft category for loans below ₹20 lakh and above ₹2 crore.

Max gain is applicable only for 'Ready to move-in' properties.

Notably, 5 basis points concession under Privilege & Shaurya home loans and Apon Ghar home loans if maintaining salary account with SBI under salary package.

Lastly, the interest rate on Topup/Suraksha loan should not be below the rate of interest charges on the underlying home loan.