Introduction
CIBIL score has become an essential factor in loans and even jobs. Recently, several concerns were raised about the lack of transparency in CIBIL score system and harassment through spam calls. The government has now stepped in with guidelines for banks, especially for first-time loan applicants.
CIBIL Complaints on the Rise
According to official data, 22,94,855 complaints were filed against CIBIL in the financial year 2024-25. Out of these, 5,80,259 complaints were linked to institutional errors, as admitted by CIBIL itself in a regulatory statement.
Banks rely heavily on CIBIL scores to approve loans and credit cards. In some cases, companies are even using credit reports in job recruitments.
Job Rejections Due to Poor CIBIL Score
Recently, the Madras High Court upheld the cancellation of an SBI job applicant whose recruitment was denied due to a poor credit report. The court observed that a person who cannot manage personal finances may not responsibly handle public money.
Transparency Concerns in Parliament
Tamil Nadu MP Karti Chidambaram raised concerns in Lok Sabha, questioning the transparency of TransUnion CIBIL.
He said:
“This private company is rating all of us based on our credit history. But we don’t know if they are updating our reports correctly. There is no clear appeal mechanism to correct errors.”
Spam Calls After CIBIL Score Check
Many consumers complained that after checking their CIBIL score on Google Pay or other portals, they started receiving spam calls from financial companies like Bajaj Finance and PaisaBazaar.
Users alleged that they were bombarded with repeated calls offering pre-approved loans, even if they only checked their credit details.
Government’s New Guidelines
Amid these issues, the central government issued a directive to banks.
Union Minister of State for Finance Pankaj Chaudhary announced in Parliament that:
- Banks should not reject first-time loan applications just because there is no CIBIL score.
- The Reserve Bank of India (RBI) has already issued guidelines instructing banks not to decline loan requests solely due to lack of credit history.
Conclusion
CIBIL scores continue to play a critical role in loans, credit cards, and even job opportunities. However, the rising complaints, spam calls, and lack of transparency have raised serious concerns. The government’s step to protect first-time borrowers from unfair rejection is a relief, but stronger measures may be needed to ensure transparency and consumer protection.
FAQs
1. Why is CIBIL score important?
CIBIL score helps banks assess a borrower’s creditworthiness. It influences loan approvals, interest rates, and even job opportunities in some cases.
2. Can a loan be rejected due to no CIBIL score?
As per RBI guidelines, banks cannot reject a first-time loan applicant just because they have no credit history.
3. How to stop spam calls after checking CIBIL score?
Experts suggest using only official portals and opting out of promotional communications to reduce spam calls. However, stricter data protection laws are needed.
Disclaimer
This article is based on official statements, parliamentary discussions, and regulatory updates. It is meant for informational purposes only and should not be treated as financial advice. Please consult financial experts before making borrowing decisions.
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