Home Loan Interest Rates Based on Different Credit Scores
Last Updated : May 13, 2024, 6:04 p.m.
A good credit score of 750 and above heightens the possibility of getting a home loan at a lower rate of interest. And, with lower rates, you can save a lot on the interest outgo on a loan that can potentially run for as long as 20-30 years. Lenders have started pricing home loans based on the credit score of an individual. Lenders pull your credit score from – CIBIL , Experian, Equifax or CRIF HIGHMARK – to set your home loan interest rate . In this post, we have showcased credit score based interest rates of different lenders.
CIBIL Credit Score Based Home Loan Interest Rates of Different Lenders in India
LIC Housing Finance Home Loan Interest Rates Based on Credit Score (CIBIL)
Individuals with a credit score of greater than equal to 700 can get the loan at the lowest rate of 8.50%. You can check the table below to track the rates across different credit scores and loan amounts.
| CIBIL Score | Loan Slab | Salaried & Professional | Non-Salaried & Non-Professional |
|---|---|---|---|
| CIBIL≥750 | Up to 2 crs | 8.50% | 8.60% |
| More than 2 crs & up to 15 crs | 8.70% | 8.80% | |
| CIBIL 700-749 | Up to 2 crs | 8.75% | 8.85% |
| More than 2 crs & up to 15 crs | 8.95% | 9.05% | |
| CIBIL 600-699 | Up to 50 Lakhs | 9.55% | 9.65% |
| More than 50 Lakhs & up to 2 crs | 9.75% | 9.85% | |
| More than 2 crs & up to 15 crs | 9.90% | 10.00% | |
| CIBIL <600 | Up to 50 Lakhs | 10.00% | 10.10% |
| More than 50 Lakhs & up to 2 crs | 10.20% | 10.30% | |
| More than 2 crs & up to 5 crs | 10.40% | 10.50% | |
| 150≤CIBIL≤200 | Up to 50 Lakhs | 9.30% | 9.40% |
| More than 50 Lakhs & up to 2 crs | 9.50% | 9.60% | |
| 101≤CIBIL<150 | Up to 50 Lakhs | 9.55% | 9.65% |
| More than 50 Lakhs & up to 2 crs | 9.75% | 9.85% |
How Much Does the Punjab National Bank Charge on a Home Loan?
With a credit score of 750 and above, you can access Punjab National Bank Home Loan at as low as 8.85% per annum. The table below shows the rates for individuals with different credit scores.
| Loan Amount (In INR) | Credit Score of 750 and Above | Credit Score of 700 and Upto 749 | Credit Score of Less Than 700 |
|---|---|---|---|
| Upto 30 Lakh | 8.95% | 9.10% | 9.45% |
| Above 30 Lakh-75 Lakh | 8.85% | 9.00% | 9.35% |
| Above 75 Lakh | 8.85% | 9.00% | 9.35% |
How Does the Bank of India Home Loan Interest Rate Fare Based on Credit Score?
If you’ve a credit score (CIBIL) of 760 and above, the Bank of India Home Loan interest rate can be as low as 8.85% per annum, which happens to be the benchmark rate of the bank. But for credit scores other than that, you need to look at the table below.
| Credit Score | Interest Rate (In Per Annum) |
|---|---|
| 800 and above | 8.85% |
| 750 to 799 | 8.95% |
| 700-749 | 9.05% |
| -1 and 0 | 9.15% |
Union Bank of India Can Give You a Home Loan Below its Benchmark Rate!
You can access the home loan upto INR 30 lakh at 8.60% if you have a credit score of 700 and above and the loan to value ratio is less than 75%. This is unique as most banks would either give the loan at the benchmark rate or after adding a spread over the same. For extensive details on the interest rates, you can glance at the table below.
| Credit Score (CIBIL) | Interest Rate (upto 30 Lakh) | Interest Rate (Above 30 Lakh) |
|---|---|---|
| 800 and above | 8.60% | 8.60% |
| 750 - 799 | 8.70% | 8.70% |
| 700 - 749 | 9.10% - 9.15% | 9.20% - 9.25% |
| 650 - 699 | 9.20% - 9.25% | 9.30% - 9.35% |
| 600 - 649 | 9.75% | 9.90% |
| below 600 | 10.25% | 10.45% |
Are SBI Home Loan Rates Based on Credit Scores?
Although the country’s largest lender State Bank of India (SBI) does not mention clearly the exact rate of interest you will get based on your credit score, its rates do factor in risk grading. The bank considers the credit score, income, repayment capability, credit exposure and several other elements as part of risk grading. So, with a good credit score and positive indicators on other elements, you give yourself the chance to access loans at a lower rate of interest. If you want to check out the rates, the below table is for you to look at!
| CIBIL Score | Interest Rates for Women (p.a.) | Interest Rates for Others (p.a.) |
|---|---|---|
| >=800 | 8.80% | 8.85% |
| 750 - 799 | 8.80% | 8.85% |
| 700- 749 | 8.90% | 8.95% |
| 650 - 699 | 9.40% | 9.45% |
| 550 - 649 | 9.60% | 9.65% |
| NTC/NO CIBIL/-1 | 9.00% | 9.05% |
HDFC Limited Home Loan Interest Rates Based on Credit Score
If you have a CIBIL Score of 780 and above, you can get an HDFC Home Loan at an interest rate of 8.65% per annum. This rate will apply irrespective of your profession and the loan amount you will avail of from this lender. On a whole, HDFC Home Loan Interest Rates range from 8.50% - 9.40%.
How Does the ICICI Bank Set Home Loan Interest Rates Based on CIBIL Score?
ICICI Bank has also started pricing home loans based on the CIBIL score of an applicant. However, the CIBIL score-based rate will differ among salaried and self-employed borrowers. While salaried can borrow at as low as 9.00%, the minimum rate for self-employed is 9.00%. These rates will apply when they have a CIBIL score of 750 and above. For detailed information on CIBIL-based rates, you can check the tables below.
Salaried
| Loan Amount (In INR) | CIBIL Score >800 | CIBIL Score >750-800 | CIBIL Score of 710-749 | NTC |
|---|---|---|---|---|
| Upto 35 Lakh | 9.00% | 9.00% | 9.50% | 9.25% |
| Above 35 Lakh-75 Lakh | 9.00% | 9.00% | 9.60% | 9.50% |
| Above 75 lakh | 9.00% | 9.00% | 9.70% | 9.60% |
Self-employed
| Loan Amount (In INR) | CIBIL Score >800 | CIBIL Score>750-800 | CIBIL Score of 710-749 | NTC |
|---|---|---|---|---|
| Upto 35 Lakh | 9.00% | 9.10% | 9.65% | 9.40% |
| Above 35 Lakh-75 Lakh | 9.00% | 9.10% | 9.75% | 9.65% |
| Above 75 lakh | 9.00% | 9.10% | 9.85% | 9.75% |
PNB Housing Finance Home Loan Interest Rates Based on Credit Score
PNB Housing Finance Limited , one of the renowned housing finance companies in India, has been charging home loan interest rates based on the credit score of applicants, irrespective of whether they are salaried or self-employed. Let’s check out the table below to know that in detail.
| Credit Score | Normal Home Loans | “UNNATI” Home Loans | ||
|---|---|---|---|---|
| Salaried/Self-employed Professionals | Self-employed | Salaried/Self-employed Professionals |
Self-employed
Home Loans/NRPL under Unnati Program |
|
| NTC CIBIL >=170 |
10.15% for Loan Amount Up to INR 35 lakh
10.35% for Loan Amount Above INR 35 Lakh |
10.55% for Loan Amount Up to INR 35 Lakh
10.75% for Loan Amount Above INR 35 Lakh |
11.75% | 13.00% |
| NTC CIBIL <170 |
10.25% for Loan Amount Up to INR 35 Lakh
10.45% for Loan Amount of More Than INR 35 Lakh |
10.65% for Loan Amount Up to INR 35 Lakh
10.85% for Loan Amount of More Than INR 35 Lakh |
||
| Upto 650 |
10.25% for Loan Amount Up to INR 35 Lakh
10.45% for Loan Amount of More Than INR 35 Lakh |
10.75% for Loan Amount Up to INR 35 Lakh
10.95% for Loan Amount of More Than INR 35 Lakh |
||
| >650 to < 700 |
10.25% for Loan Amount Up to INR 35 Lakh
10.45% for Loan Amount of More Than INR 35 Lakh |
10.75% for Loan Amount Up to INR 35 Lakh
10.95% for Loan Amount of More Than INR 35 Lakh |
||
| >700 to <725 |
9.85% for Loan Amount Up to INR 35 Lakh
10.05% for Loan Amount of More Than INR 35 Lakh |
10.55% for Loan Amount Up to INR 35 Lakh
10.75% for Loan Amount of More Than INR 35 Lakh |
||
| >725 to < 750 |
9.55% for Loan Amount Up to INR 35 Lakh
9.70% for Loan Amount of More Than INR 35 Lakh |
10.25% for Loan Amount Up to INR 35 Lakh
10.30% for Loan Amount of More Than INR 35 Lakh |
||
| >750 to <775 |
9.25% for Loan Amount Up to INR 35 Lakh
9.35% for Loan Amount of More Than INR 35 Lakh |
9.80% for Loan Amount Up to INR 35 Lakh
10.15% for Loan Amount of More Than INR 35 Lakh |
||
| >775 to 800 |
9.10% for Loan Amount Up to INR 35 Lakh
9.20% for Loan Amount of More Than INR 35 Lakh |
9.65% for Loan Amount Up to INR 35 Lakh
9.80% for Loan Amount of More Than INR 35 Lakh |
||
| >800 to 825 |
8.50% for Loan Amount Up to INR 35 Lakh
8.50% for Loan Amount of More Than INR 35 Lakh |
8.90% for Loan Amount Up to INR 35 Lakh
8.90% for Loan Amount of More Than INR 35 Lakh |
||
| >825 |
8.50% for Loan Amount Up to INR 35 Lakh
8.50% for Loan Amount of More Than INR 35 Lakh |
8.80% for Loan Amount Up to INR 35 Lakh
8.80% for Loan Amount of More Than INR 35 Lakh |
||
Conclusion
Based on the provided data, we can conclude that the interest rates for a home loan in India vary depending on the loan amount and credit score of the borrower. The interest rates range from 8.50% to 10.95% for loan amounts up to INR 35 lakh, and from >10.95% to 8.50% for loan amounts above INR 35 lakh. The credit score of the borrower is also an important factor in determining the interest rate, which can range from 8.50% to 9.85% for those with scores above 700, and from 9.10% to 9.55% for those with scores between 750 and 775. It is recommended that borrowers maintain a good credit score and negotiate with lenders to get the best possible interest rate for their home loan.