CIBIL Score Update- Major relief for middle class people. If are not getting loans due to low CIBIL score, then this article is for you. Now even people with low CIBIL score will get loans from banks in one go. Earlier, banks used to refuse loans citing low CIBIL score. Due to this, lakhs of people were stuck in this dilemma and they had to make various efforts to improve their CIBIL score, but now it will not bother them.
The government has given relief to such people and has ordered the banks to give loans to such people. The government has ordered not to check the CIBIL score of people taking loans for the first time. However, the requirement of checking the CIBIL score for taking a loan again has not been abolished.
Banks cannot refuse to give loans on the basis of CIBIL score. During the monsoon session in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary clarified that in the absence of a CIBIL score, loans can be given considering the customer’s background and payment history. In such a situation, banks can give loans even without a CIBIL score.
RBI’s order, application will not be rejected
RBI has given orders to stop the arbitrary practice of not giving loans in case of low CIBIL score. When many people applied for a loan, the bank rejected their application saying that your CIBIL score is low or it is not visible. According to RBI, banks cannot reject loan applications only on the basis of low CIBIL score. They cannot refuse to give loan to a customer due to lack of credit history. After this decision of RBI, lakhs of people of the country will get relief and they will get a chance to take a loan.