{"id":7913,"date":"2025-08-25T18:10:56","date_gmt":"2025-08-25T18:10:56","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/08\/25\/no-cibil-score-govt-clarifies-first-time-borrowers-cannot-be-denied-loans-business-news\/"},"modified":"2025-08-25T18:10:56","modified_gmt":"2025-08-25T18:10:56","slug":"no-cibil-score-govt-clarifies-first-time-borrowers-cannot-be-denied-loans-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/25\/no-cibil-score-govt-clarifies-first-time-borrowers-cannot-be-denied-loans-business-news\/","title":{"rendered":"No CIBIL Score? Govt Clarifies First-Time Borrowers Cannot Be Denied Loans | Business News"},"content":{"rendered":"


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Minister of State for Finance Pankaj Chaudhary told the Lok Sabha that RBI has issued no directive mandating a minimum credit score for loan eligibility<\/h2>\n
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Banks must consider other factors for first-time loan applicants.<\/p>\n<\/figure>\n

For years, borrowers have been told that a strong CIBIL score is the gateway to easy loans, while a weak one can either block access to credit or attract punishingly high interest rates. But a longstanding question has troubled first-time borrowers: what happens if you have no CIBIL score at all?<\/p>\n

The government has now offered a clear answer. In a recent statement in Parliament, the Ministry of Finance clarified that banks and financial institutions cannot reject a loan application solely because an applicant does not have a credit history.<\/p>\n

Minister of State for Finance Pankaj Chaudhary told the Lok Sabha that the Reserve Bank of India (RBI) has issued no directive mandating a minimum credit score for loan eligibility. Instead, RBI has advised lenders to consider other factors when dealing with those who are seeking credit for the first time.<\/p>\n

This clarification means that whether it is a student applying for an education loan, a family looking for a home loan, or an entrepreneur seeking funds for business, the absence of a CIBIL score cannot be the sole reason for denial. In such cases, banks will have to assess the application on the basis of income, employment history, and other financial records.<\/p>\n

In India, credit scores usually range between 300 and 900, with higher scores reflecting consistent repayment of past borrowings. For most lenders, it is a primary filter in loan processing. However, the government has stressed that it should be treated as one of several tools, not an absolute barrier.<\/p>\n

Currently, four licensed credit bureaus operate in the country: TransUnion CIBIL, Equifax, CRIF High Mark, and Experian. These agencies track individuals\u2019 financial activity and repayment patterns to generate credit reports.<\/p>\n

For first-time borrowers, this announcement comes as a relief. It removes the fear of being locked out of the lending system simply because they have never taken a loan before. However, experts caution that once a person does enter the credit cycle, their repayment behaviour will shape their credit score\u2014affecting the ease and terms of borrowing in the future.<\/p>\n

News<\/a> business<\/a> No CIBIL Score? Govt Clarifies First-Time Borrowers Cannot Be Denied Loans<\/span><\/div>\n
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Last Updated:August 25, 2025, 15:53 IST Minister of State for Finance Pankaj Chaudhary told the Lok Sabha that RBI has issued no directive mandating a minimum credit score for loan eligibility Banks must consider other factors for first-time loan applicants. For years, borrowers have been told that a strong CIBIL score is the gateway to…<\/p>\n","protected":false},"author":1,"featured_media":7914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-7913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/7913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=7913"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/7913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/7914"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=7913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=7913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=7913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}