This is how you can get bank loan at lowest rate

State-run Bank of Baroda recently reduced home loan rates to the industry`s lowest level of 8.35 percent --Know how you can avail it.

New Delhi:  State-run Bank of Baroda recently reduced home loan rates by 70 basis points to the industry's lowest level of 8.35 percent that will be applicable for customers having a strong Cibil scores.

BoB has reduced its marginal cost of fund based lending rates (MCLR) by 55-75 basis points across all tenors.

The highest home loan rate would be at 9.35 percent. The new rates would be applicable to all loans sanctioned with effective from January 7.

Know what is Cibil score and how it works for you.

For the scores the bank will initially rely on credit scores of Credit Information Bureau of India (CIBIL)

The home loan rate is linked to their Cibil scores. A customer with a Cibil score of 760 and above will be offered the lowest rate of 8.35 percent.

Your Cibil score is decided by the factors of discipline that you maintain in repaying your existing loans.

If your credit score improves, you will have to pay less EMI, and the other way around.

Considering that you have a good Cibil score and you pay the lowest interest of 8.35 percent then on a home loan of Rs 50 lakh, it will translate into a saving Rs 2,496 a month and around Rs 9 lakh for a 30-year loan.

For the first-time borrowers, who don't have any credit history with any credit information bureau, they will  be charged 8.85% interest.