Your CIBIL score can affect your Home Loan interest rate

You are aware that your credit score plays an important role in deciding whether you get a loan or not.every bank checks your CIBIL score (or credit score) as part of its loan sanction process.

As per CIBIL website (as on January 31, 2017), 79% of the loans are approved for individuals with a CIBIL score of 750 or more. CIBIL score ranges from 300 to 900. Higher the better. Your credit score is considered a measure of your credit worthiness. No surprise, a higher score increases your chances of getting a loan.

Recently, Bank of Baroda has moved a step further. The bank has now linked the interest rate (that you get) with your credit score. Higher the credit score, lower the interest you have to pay. It wouldn’t be unwise to expect other banks to follow suit soon.