This initiative will see the bank offer a home loan at marginal cost of funds based lending rate (MCLR) for consumers with a CIBIL Score of 760 and above. MCLR is the minimum interest rate of a bank below which it cannot lend.
A consumer’s CIBIL Score is a 3-digit numeric summary of the credit information report (CIR) — summarising the past credit behaviour and repayment history — and ranges from 300 to 900. The higher the Score, the better are the chances of loan approval. Most banks check a consumer’s CIBIL Score and Report before approving a loan.
Commenting on this, CIBIL’s Head of Direct to Consumers Interactive, Hrushikesh Mehta said, “Bank of India’s CIBIL Score based incentive helps further highlight the need to monitor and build a positive credit profile through good credit habits. This has always been our mantra and we are happy to be aligned with Bank of India on this. We are dedicated to helping consumers have a faster, easier and cheaper access to credit.”