The Retail Prime Lending Rate (RPLR) of the private sector HDFC, on which its adjustable rate mortgages (ARHL) are referenced, increased by 5 basis points, with effect from June 1. With this 5 basis point increase, the total interest rate hike will be 40 basis points for HDFC home loan borrowers. A basis point is one hundredth of a percentage point.
Private sector lender ICICI Bank has also revised the marginal cost of funds-based lending rate with effect from June 1, 2022, according to its website. The state-run Bank of India has also increased the marginal cost of funds-based lending rate over a term with effect from June 1, 2022.
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In the case of SBI, under regular home loans, for a credit score greater than or equal to 800, the interest rate will be the lowest at 7.05% with a maximum gain of 7.45%. Between 750 and 799 credit scores, the interest rate is 7.15%, while on credit scores 700 to 749, the interest rate is 7.25%. For credit scores 650 to 699, the interest rate will be 7.35%, while for credit scores 550 to 649, the rate is 7.55%. For the NTC/non-CIBIL score, the interest rate is 7.25%. With the exception of a CIBIL score greater than or equal to 800, the maximum payout for regular home loans is the same as the interest rate.
The lower your credit score, the higher the interest rate charged on your home loans and vice versa. In particular, the CIBIL score gives a view of how a borrower manages their credit, while showing the ability of borrowers to take out loans and repay them.