[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-628783-105":59,"doc-detail-628783-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","the-economic-times-wealth-volume-13-no-42-october-19-25-2026","The Economic Times Wealth - Volume 13 No. 42 - October 19-25, 2026","","The Economic Times Wealth issue October 19-25, 2026 examines how improving a borrower’s credit score can reduce home-loan interest costs. It explains the role of RBI’s repo-rate changes, the benchmark-driven structure of retail floating-rate loans, and how banks set and vary the effective spread and credit risk premium. Case examples show negotiated reductions in interest rates and estimated savings of lakhs, while also noting limits: spread components depend on the time of sanction and may be adjusted only under specified credit-profile changes.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/the-economic-times-wealth-volume-13-no-42-october-19-25-2026/628783/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/the-economic-times-wealth-volume-13-no-42-october-19-25-2026/628783.png","ImageObject",300,407,{"name":92,"@type":93},"Terk","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-10-21",true,{"@type":102,"interactionType":103,"userInteractionCount":19},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How does a higher credit score help reduce home-loan interest costs?","Question",{"text":112,"@type":113},"A stronger credit profile can help borrowers negotiate a narrower effective spread by lowering the interest rate or credit-risk-related premium charged by lenders.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What is the link between repo rate changes and home-loan rates?",{"text":117,"@type":113},"For retail floating-rate loans linked to external benchmarks, banks must pass on repo-rate changes to borrowers, improving transparency and rate transmission.",{"name":119,"@type":110,"acceptedAnswer":120},"Can banks always lower a borrower’s rate after the loan is sanctioned?",{"text":121,"@type":113},"No. The sanctioned spread reflects the borrower’s profile at the time of sanction, and changes to credit-risk premium depend on deterioration or approved adjustments tied to credit-profile changes under RBI directions.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},628783,1792768228,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":19,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":26},1099525198933,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","[www.etwealth.co | Ahmedabad](www.etwealth.co | Ahmedabad), Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | Volume 13 No. 42 | October 19-25, 2026 | 24 pages | `8   \nThe Economic Times Wealth October19-25, 2026  \n01  \nUnlock lower loan rates  \nHow your credit score  \ncan help you geta better  \nhome loan deal P2  \nTIME FOR LARGE CAPS? P4 TURNING FINANCE INTO A CAREER P6  \n02  \ncover story  \nThe Economic Times Wealth October19-25, 2026  \nRising rates? Your credit score can cut your home loan cost  \nA better credit score can help you negotiate a narrower spread, cushioning repo hikes and saving lakhs.  \nby Preeti Kulkarni  \nhen Gurugram-based finance professional  \nWVhiircarmediTtwcaorrsrawise  \nfrom around 780 to 803, he spotted an opportunity to cut the interest cost of his `72 lakh home loan. The improvement helped him negotiatea reduction in his interest rate from 8.45% to 7.5%, translating into estimated savings of around `6 lakh over his remaining tenure.  \n“I have always been diligent with my repayments, so my credit score had improved organically overtime. It helped in lowering my interest rate,”he says.  \nLike Tiwari, several borrowers with strong credit profiles, including an impeccable repayment track record, are finding that their diligent behaviour can earn them better deals from lenders. This matters more as borrowing costs are set to rise. On 7 October, the Reserve Bank of India (RBI) raised therepo rate by 25 basis points to 5 .5% and shiftedits monetary policy stance from neutral to calibrated tightening, signalling that further rate hikes remain a possibility. Economists expect the central bank to hike therepo rate by 75 basis points (one basis point equals 0.01 percentage point) by April 2027.  \nFor home loan borrowers, it’s more important than ever to keep their  \nAHAAN PANDIT  \nFinance professional, Bengaluru  \nHome loan taken in  \n2018  \n\n| | Credit score in 2018 | | Improved credit score |\n| --- | --- | --- | --- |\n| 730 |  |  | 810 |\n\n I emailed my bank, pointed to my improved credit score and asked them to reprice my home loan.   \nOriginal interest rate  \n8%  \nRate post negotiation  \n7.25%  \nEstimated interest saved  \n`14 lakh  \ncredit profiles in good shape and explore opportunities to negotiate a lower rate with their lenders. Even a modest interest-rate reduction can translate into substantial savings.  \nCredit score to the rescue  \nAll retail floating-rate loans sanctioned by banks after 1 October 2019 are linked to an external benchmark, typically therepo rate. Banks must pass on repo rate changes to borrowers, ensuring better transparency  \nand transmission than older base rate-or marginal cost of funds-based lending rate (MCLR) loans. However, non-banking financial companies (NBFCs) are exempt from this regime.  \nThe effective home loan rate essentially comprises the external benchmark chosen by banks (repo inthe majority of cases), operating costs and credit risk premium. While the RBI sets therepo rate, the spread is the additional amount alender charges over the benchmark rate. The RBI’s  \nCommercial Banks–Interest Rates on Advances Directions, 2025 leave the spread to banks. However, banks must follow aboard-approved policy for setting spreads.“The other spread components maybe reduced by banks for a loan category earlier than three years for customer retention, on justifiable grounds, in a non-discriminatory manner, and in terms of the bank’s policy,”the circular says.  \nThe policy must specify the components of the spread and the range applicable to each borrower category. Therefore, the spread can vary across lenders and borrower categories.“The credit risk premium charged to an existing borrower shall not be increased except on account of deterioration in the credit risk profile of the customer or change in tenor premium,” RBI directions state.  \nSome banks transparently disclose differential effective interest rates for various borrower categories, depending on their cred","cbCaif8kQ93MOx6w","https://ap.wps.com/l/cbCaif8kQ93MOx6w","pdf",10217025,24,"English","# Unlock lower loan rates\n## How your credit score can help you get a better home loan deal\n## Credit score to the rescue\n## Credit risk premium and spread components\n## Case studies and borrower awareness","[{\"question\":\"How does a higher credit score help reduce home-loan interest costs?\",\"answer\":\"A stronger credit profile can help borrowers negotiate a narrower effective spread by lowering the interest rate or credit-risk-related premium charged by lenders.\"},{\"question\":\"What is the link between repo rate changes and home-loan rates?\",\"answer\":\"For retail floating-rate loans linked to external benchmarks, banks must pass on repo-rate changes to borrowers, improving transparency and rate transmission.\"},{\"question\":\"Can banks always lower a borrower’s rate after the loan is sanctioned?\",\"answer\":\"No. The sanctioned spread reflects the borrower’s profile at the time of sanction, and changes to credit-risk premium depend on deterioration or approved adjustments tied to credit-profile changes under RBI directions.\"}]","The Economic Times Wealth - Volume 13 No. 42 - October 19-25, 2026 | PDF",1792618670]