CIBIL Score: Usually, people know that to take a loan from a bank, it is very important to have a good CIBIL score. But do you know that there are some conditions where a CIBIL score is not necessary? You may be shocked to hear this, but you can know first.

NBFCs have made new rules, due to which the way for people to take loans can also be opened. If you do not have a credit score with the bank or have never taken a loan, then you can easily get a credit card. In such a situation, you must be wondering on what basis the bank will give a loan in this condition. The government has also made the rules very clear in this matter.

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CIBIL score is not necessary

According to the Union Finance Ministry, a minimum CIBIL score is not necessary for first-time loan takers. During the monsoon session in Parliament, Minister of State for Finance Pankaj Chaudhary clarified that, as per RBI instructions, banks should not cancel the loan application of an applicant only because of a low or zero credit score. It is clear that if a person is taking a loan for the first time, then the credit score will not matter.

Bank grounds will be checked.

If you are taking a loan for the first time from any bank, then there will definitely be no CIBIL score. According to the Union Finance Ministry, banks were cautioned to adopt reasonable due diligence and check the background of loan customers. This will include checking information such as the applicant’s payment record, liabilities, settled or restructured loans and written off accounts.

Meanwhile, Pankaj Chaudhary said in the House that under the best practices for credit institutions, the Reserve Bank has advised in the Master Direction issued on January 6, 202,5, that the application of first-time loan takers should not be rejected only on the ground that they do not have any credit history.

CIBIL score is not fixed

The central government made it clear that the RBI has not set any minimum credit score for the loan applicant. Banks and other lenders will make decisions only based on the CIBIL score. The government has clarified that the RBI has not fixed any minimum credit score for a loan application.