Bank of India to offer cheaper home loans

Bank of India (BOI) will offer home loans at a lower rate to those consumers who have a CIBIL score of 760 and above. These consumers will get home loans at marginal cost of funds based lending rate (MCLR) if the loan amount is Rs 30 lakh or more.

For home loan above Rs 30 lakh, consumers with a CIBIL score of 760 and above will get the rate at MCLR for a year, which is currently 8.4%. While those whose CIBIL score is lower than 759 will get the home loan at MCLR + 0.10 basis points for a year, which works out to 8.5%.

“Earlier when consumers applied for loans, they had to negotiate with the bank for lower rates, if they had good credit scores. But now with banks becoming transparent about preferential pricing it will take away the anxiety for consumers,” said CIBIL’s head of Direct to Consumers Interactive, Hrushikesh Mehta.

A CIBIL score is a summary of the credit information report (CIR) — summarising the past credit behaviour and repayment history — and ranges between 300 and 900.