RBI CIBIL Score: If you’re considering applying for a home, car, or education loan soon, this information is crucial for you. The Reserve Bank of India (RBI) is set to introduce a new Expected Credit Loss (ECL) framework in the upcoming fiscal year. Under this new regulation, individuals with lower credit scores might encounter challenges in securing loans.
Reports suggest that individuals with a CIBIL score below 730 may find it tough to access home, car, and education loans starting from April 1, 2027. Therefore, it is essential to monitor your credit score promptly and keep it in good standing.
What is a CIBIL score and why is it significant?
A CIBIL score is a numeric representation of a person’s creditworthiness and financial behavior, ranging from 300 to 900.
- A score of 750 or higher is considered favourable.
- A score below 730 could label you as a high-risk borrower in the eyes of banks.
- A lower score could lead to loan rejections or higher interest rates.
What does RBI’s new ECL framework entail?
The Expected Credit Loss (ECL) framework requires banks to anticipate and set aside funds for potential future bad debts (NPAs). This will lead to a more thorough evaluation of customers’ credit histories and CIBIL scores by banks when approving loans.
Therefore, maintaining a healthy credit score will be even more critical going forward.
How to check your CIBIL score from home?
- Visit the official CIBIL website.
- Click on ‘Get Your Free CIBIL Score.’
- Provide your name, email, and mobile number.
- Verify your identity using your PAN card, passport, or voter ID.
- Enter the OTP sent to your mobile.
- Your CIBIL score will be displayed.
As per RBI regulations, you can obtain your CIBIL report for free once a year.
You can also check your score through various payment apps
Using apps like BHIM, Google Pay, or PhonePe, select ‘Check CIBIL Score’ or ‘Credit Score.’
Enter your mobile number and PAN card details.
Your score will be shown after entering the OTP.
Regularly checking your score through these apps will not harm your credit score as it is a soft inquiry.
Tips to prevent loan rejection
Ensure timely payment of EMIs and credit card bills.
Avoid taking on excessive debt.
Avoid applying for loans from multiple banks simultaneously.
Regularly monitor your CIBIL score.
Keep your PAN card and the mobile number linked to it updated
With changing banking regulations, a good CIBIL score will be the most important indicator of your financial credibility in the future. So, if you’re planning to take out a loan in the future, start paying attention to your credit score.
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