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SBI CIBIL SCORE

CIBIL score for SBI personal loan

Banks, including the State Bank of India, consider your CIBIL score the most important criterion for determining your eligibility for a personal loan. According to your CIBIL report, your score is calculated based on your credit history, the number of current loans, frequency of loan and credit card applications, timeliness of repayment, and other factors. SBI analyzes these parameters to determine the likelihood of recovering your loan amount if they offer you a loan.

Personal loan applications with poor and medium-good credit scores are assessed based on other factors, such as current monthly income, credit utilization ratios, and employment stability.

There are different categories of CIBIL scores ranging from 300 to 900. A score of 300 indicates the lowest score, and a score of 900 indicates the highest score. The interpretation of each category by lenders like SBI and other non-banking financial institutions determines loan eligibility.

Here’s the meaning of CIBIL scores for SBI personal loans:

  • 750 – 900: Banks like SBI and financial institutions consider a CIBIL score of over 750 as a good CIBIL score for personal loans. In this range, applicants are considered risk-averse, improving their chances of getting a personal loan. As well as negotiating a lower interest rate and higher loan amount on a personal loan application, the borrower can also take advantage of favorable terms and conditions.
  • 600 – 749: CIBIL score in this range is a mediocre score. In addition to the CIBIL score, other factors are taken into account by SBI when determining whether a borrower with a CIBIL score in this range is eligible for a personal loan.
  • If your CIBIL score is 300 to 599, your chances of qualifying for an SBI personal loan are slim. SBI personal loan applications are likely to be rejected. A personal loan might be offered based on gold schemes, assets, shares, or fixed deposits with scores in this bracket. To qualify for an SBI personal loan, applicants must improve their CIBIL score through consistent creditworthy behavior. Your SBI personal loan eligibility will be hampered if you receive repeated rejections.

What are the highlights of the SBI Personal Loans?

As mentioned below, applicants can apply for many types of personal loans based on their eligibility.

The highlights of these loan types are tabled below.

CategorySBI Xpress SBI Quick Personal LoanSBI Pension Loan
PurposeSalaried employees having an SBI account can get loanSalaried employees not having SBI accountPensioners or family pensioners can get a loan
Loan AmountRs. 25,000- 2,00,000 or 24 times net monthly income Rs. 24,000- 20,00,00 or 24 times net monthly incomeCentral and State Government Pensioners – Rs. 7,50,000 to Rs. 14,00,000 (depending on their age)Defence Pensioners – Rs. 7,50,000 to Rs. 14,00,000 (depending on their age)Family Pensioners – Rs.2,50,000 to Rs. 5,00,000 (depending on their age)
Rate of Interest About 12.63 %Approximately 9.75% – 10.25%Between 10.85% – 12.85%
TenureLower of,6 years orPeriod of service remainingLower of,6 years orPeriod of service remainingBetween 2 years to 7 years depending on the age of the applicant and category of applicant

How does SBI interpret your creditworthiness using the CIBIL score?

If, In addition to having a high credit score, you have managed your credit well and are disciplined in your handling of credit products. You would fall under the low-risk segment when assessing your creditworthiness and would thus be considered a preferred borrower by the bank. You may also get your loan approved quickly at relatively low interest rates. 

A low CIBIL score indicates you haven’t managed your finances well, which may result in your loan application being denied. It also affects your creditworthiness, and there are high chances that you might default on the loan. Your loan application will not be approved if the bank thinks you cannot repay it. In such cases, your loan application will be rejected, or you may get a loan at high-interest rates. 

Possible reasons for SBI Personal Loan Rejection

Details regarding every defaulted payment for the last three years are shown in your CIBIL report. SBI bank will track your report, and if there is any lack of timeliness of debt repayments, it becomes visible to SBI when you apply for a personal loan in the future, raising a red flag for SBI and making them skeptical of offering your loan.

Some main factors that may lead to SBI personal loan rejection:

  • Defaulting on SBI personal loans can also affect your CIBIL score. Your CIBIL score is evaluated during the personal loan application process, and a history of late payments alerts the bank authorities to your apparent financial stress. You are more likely to have your loan application rejected, which negatively impacts your CIBIL score.
  • Avoid applying for another SBI personal loan until your credit score improves if you’ve been rejected several times in the past within a short period. To enhance your CIBIL score, pay your dues on existing loans and outstanding monthly debt on credit cards. Then consider applying for a secured SBI personal loan.
  • Avoid applying for multiple loans within a short period. As a result of financial instability, this behavior is interpreted as debt-hungry behavior, causing questions about your ability to maintain liquidity. Applying for another SBI personal loan immediately after the closure of an existing one is a sign of debt hunger.
  • Be careful not to act as a guarantor for an SBI personal loan applicant. Banks and financial institutions sometimes ask for a guarantor from loan applicants with a low CIBIL score. Make sure you are not a co-applicant or a guarantor, as you may not get a beneficiary’s benefits. Also, when the primary borrower defaults on the loan, it affects not only his/her CIBIL score but also that of the co-applicant/ guarantor. In such cases, the bank can ask the guarantor to pay the outstanding debt on his/her behalf.

If you want to get your CIBIL score for SBI. You can reach out to Credit Rating Information Services of India Limited (CRISIL), ICRA Limited, Credit Analysis and Research Limited (CARE), and many other popular agencies in India.

In the end,

An individual with a low CIBIL score may not necessarily default on the EMI payment, and an individual with a high CIBIL score may not default on the EMI payment for sure. However, a good credit score may help lenders segregate potentially reliable borrowers. You can start building your CIBIL score in case you have a score less than 750; once it exceeds 750, you can apply for a loan.  

FAQs

  1. What are some of the reasons that affect your CIBIL score?
  2. Late/Non-payment/Defaulters of credit card dues or loan EMIs
  • Applying for loans or credit cards frequently through lenders
  • Utilizing your credit limit excessively 
  • Paying the minimum amount due on credit card dues frequently
  • Closing an older credit card or withdrawing card against credit card
  • Failure to report any errors and fraudulent charges in the credit report

4. Is CIBIL™ score mandatory for the personal loan application of SBI?

Ans. Yes. When reviewing a personal loan application from the Bank, the CIBILTM score is a vital eligibility parameter. It serves as the lender’s first screening of your credit profile. Your chances of getting approved for a loan are better the higher your credit score.

5. Will settlement of personal loan affect CIBIL™ score?

Ans. Yes. Settlement of a personal loan will hurt your CIBIL™ score.’

6. What is the password to open the CIBIL Score PDF?

Ans. Your date of birth in DDMMYYYY format is the default password for opening your credit report PDF containing your CIBIL score.

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