Thursday, June 25, 2009


Banks and NBFCs use the credit scores from rating agencies like CIBIL to evaluate the loan or credit card application from its customers. Based on the credit scores , the banks/NBFCs take their credit underwriting call. For good customers having higher CIBIL Scores, the loans generally gets approved while for people having lower scores, the loan is denied.

But, the problem is that these scores are never shared with the customer. Unlike, in West, where every customer has access to his/her credit score, in India, this was not possible till now. But, now there is something to cheer. Now, as per the regulations, all banks and NBFCs are directed to provide the details of the CIBIL score to all such customers/applicants whose loan or credit application has been declined by the bank on the grounds of bad or substandard credit score. The customer can demand his/her credit score details from the bank. The customer,however, will have to pay Rs 50 towards this service.

This is small step in the right direction as this will make the whole process more transparent. Also this will increase the awareness about credit scores in India.

1 comment:

  1. My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.