How difference of just 100 points in Cibil score may force you pay Rs 10.41 lakh extra on Rs 50 lakh home loan
Most of us have the dream of buying a home. However, homes are expensive, and one relies on home loans to fulfil their dream. Lenders check an applicant's Cibil score before extending the loan offer. A person with a Cibil score above 750 points can get a home loan at a much lower interest rate than a person with a Cibil score of 550 points.
AR Hemant, AVP, BankBazaar.com, says the credit score-based risk grading of borrowers varies from one lender to another. "It’s very clear that the best loan offers go to borrowers with scores above 800. The lowest advertised rates we’re seeing in the market are between 8.30 and 8.50. These rates would go to borrowers whose scores are above 750. A large government bank advertises its risk-graded rates as follows: If your score is above 750, you could get the lowest possible rate, which is 8.50, going up to 9.15. If you’re between 550 and 649, your rate could be 9.65. So there’s an advertised gap of 115 bps here," said Hemant.
In such a scenario, get to know what the difference will be between Rs 50 lakh, 20-year home loan repayment amounts, and EMIs on the basis of the Cibil score.
Photos: Unsplash/Pixabay
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