MUMBAI:
IDBI Bank has announced discounted interest rates for home loans, based on consumers’ CIBIL Scores. Credit-disciplined consumers with a CIBIL Score above 700 can avail of this new offering that will deliver significant cost savings over the entire loan period.
This preferential pricing initiative by IDBI Bank will reward good credit behaviour among high-Scoring consumers, while urging others to monitor their credit habits and CIBIL Score.
A consumer’s CIBIL Score is a 3-digit numeric summary of the credit information report (CIR) — based on past credit behaviour and repayment history — and ranges from 300 to 900. The higher the Score, the better are the chances of a loan being approved. Most banks check a consumer’s CIBIL Score and Report before approving a loan, thus rendering it a critical influencer in the loan underwriting process.
Speaking about the offering, Jorty Chacko, Executive Director, IDBI Bank said, “We are keen to provide all aspiring consumers with access to credit, but while doing so, it is important to reward those consumers who have exhibited consistent credit discipline through timely payments, responsible credit management as reflected by higher CIBIL Scores. The new CIBIL Score-based discount offering can be leveraged by credit-disciplined consumers to purchase their dream homes, and avail discount ranging between 0.05 – 0.15 bps (basis points) on their home loan to save money too.”
IDBI Bank is offering discounts as mentioned below. These will be applicable to all new consumers applying for a home loan:
CIBIL Score Range Bps discount
Above 800 0.15 bps
750- 799 0.10 bps
700- 749 0.05 bps
Speaking about IDBI Bank’s offering, CIBIL’s Head of Direct to Consumers Interactive, Hrushikesh Mehta said, “CIBIL’s vision has always been to enable faster and cheaper access to credit. IDBI Bank’s CIBIL Score-based discount offering is a positive step towards rewarding financial discipline with a material benefit.”
Hrushikesh reiterates the importance of monitoring one’s own CIBIL Score, “We recently launched unlimited access to CIBIL Score and Report with new features such as Score Trends, Credit Summary and Score Analysis. It will help consumers understand their eligibility for these offers.” For more information about how to build a CIBIL Score, go to www.cibil.com.
