CIBIL Score: Congress MP Karti Chidambaram asked such a question that there was an uproar in the entire Parliament and this question itself was such. This raised questions on the entire banking system. Karti’s question was on Sibil. Yes, if your CIBIL score is bad then you will neither be able to take a housing loan nor an education loan. You will not even get a personal loan. You will also no longer be entitled to a credit card. You may have to run around to get money from outside for business or household needs.
What is CIBIL score, who decides it?
CIBIL score is a three digit number. This decides what your borrowing or loan capacity is. What kind of credibility do you have to repay this? It is calculated on the basis of repayment of previous loans taken and current financial capacity. In this, the lowest score is 300 marks and the highest is 900 marks. It depends on many factors. Whoever has a PAN card, his CIBIL score is determined automatically. On this basis, banks and financial institutions decide the ability of a person to take a loan. That is, on the basis of this, the financial institutions decide to what extent the person giving the loan will easily repay the loan.
What will happen if CIBIL score is very bad?
If a person’s CIBIL score is very bad, then financial institutions can refuse to give loan to that person. The work of determining CIBIL score is done by a company called Credit Information Bureau India Limited (CIBIL). This company was formed in the year 2000 on the basis of the report of Siddiqui Committee of the Reserve Bank. After its merger with America’s Trans Union Company in 2003, its name became Trans Union CIBIL Limited. This is a private company, which is entrusted with the work of managing the CIBIL scores of 60 crore people of India. Controversies have arisen regarding this score before also. Karti Chidambaram has also demanded the formation of a government agency under the Reserve Bank for such scores.
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