Whenever a person applies for a loan from a bank or other financial institution, his age, income and profession along with his credit score (CIBIL Score) is also taken into consideration.
Another setback for Paytm, reduced the target price of the share to Rs 450
A low credit score may result in the loan application being rejected or the higher interest payable on the loan. Credit score is very important for home loan. It takes effect during the entire repayment period. According to experts, a low credit score attracts more interest while a good credit score attracts less interest.
Banks usually review the credit score once in a year. During this period, due to increase or decrease in credit score, interest rates can also change. However, banks hike interest rates only when there is a decrease of 50 basis points in the credit score of the borrower.
Interest Rate as per CIBIL Score (% p.a.)
Note: The interest rates are taken from the websites of banks and NBFCs. Actual interest rates may differ from this.
Chicken prices rise 40 percent, Ukraine-Russia war will increase inflation and unemployment
The loan amount affects
The rate of interest is also affected by the loan amount. For example- If your credit score is above 800 and the home loan amount is Rs 30 lakh, then the bank will also give you a loan at the rate of 6.70 percent per annum. If the loan amount is more than Rs 1 crore, then the rate of interest will be 7.50 percent per annum.