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Credit Score · Guide

Credit score required for a home loan

For a home loan of ₹50 lakh or more, your credit score can swing the interest rate by 40-80 basis points. Over a 20-year tenure, that's lakhs of rupees. Here's the score you need for each major bank and how to hit it.

By FinancePaisa Editorial Team · Research & editorialUpdated · 2 min read
On this page (6 sections)

Score cut-offs by bank

  • SBI

    Minimum acceptable
    700
    Score for best rate
    800+
  • HDFC Bank

    Minimum acceptable
    700
    Score for best rate
    780+
  • ICICI Bank

    Minimum acceptable
    720
    Score for best rate
    780+
  • Axis Bank

    Minimum acceptable
    720
    Score for best rate
    780+
  • PNB

    Minimum acceptable
    700
    Score for best rate
    780+
  • Bank of Baroda

    Minimum acceptable
    700
    Score for best rate
    780+
  • LIC HFC

    Minimum acceptable
    650
    Score for best rate
    750+

Rate impact by score band

  • 800+

    Rate premium
    Base rate
    Extra interest on ₹50L / 20 yr
    —
  • 750-799

    Rate premium
    + 10-15 bps
    Extra interest on ₹50L / 20 yr
    ₹85k – ₹1.3L
  • 700-749

    Rate premium
    + 30-40 bps
    Extra interest on ₹50L / 20 yr
    ₹2.5L – ₹3.4L
  • 650-699

    Rate premium
    + 60-80 bps
    Extra interest on ₹50L / 20 yr
    ₹5L – ₹6.6L
  • Below 650

    Rate premium
    Case-by-case / decline
    Extra interest on ₹50L / 20 yr
    Substantial

If your score is 700-749

You'll likely be approved but at a rate 25-40 bps above the starting rate. If your loan is ₹30 lakh or less, applying is fine. For larger loans, spend 6 months lifting the score above 750 first - the savings comfortably beat the delay.

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If your score is below 700

  • Postpone the application by 6-12 months if possible
  • Clear all credit-card outstandings and get utilisation below 30%
  • Never miss an EMI during the improvement window
  • Do not apply to multiple banks - each rejection makes it worse
  • Consider an NBFC-HFC (LIC HFC) which accepts 650+ but at higher rates

Joint applicant impact

If your score is weak, adding a co-applicant with a strong score often gets you into a lower rate band. Banks blend the two scores in underwriting, and the primary borrower's score is not the only factor.

Frequently asked questions

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