Work actively on improving your credit score to protect your home loan rate

Bank of Baroda (BoB) recently hiked the credit risk premium it charges its home loan customers (the risk premium is added to the external benchmark rate to arrive at the home loan rate). It also made its credit score criteria more stringent. State Bank of India, the country’s largest lender, had hiked its risk premium in May. The gains that accrue to a home loan borrower due to a decline in the repo rate get offset, to some extent, when there is an increase in the risk premium.   BoB’s best rate has risen from 6.85 per cent to 7 per cent due to the hike in risk prem.....

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