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CIBIL Score New Rules | Nowadays, if you want to get a loan from a bank for home or any other purpose, your CIBIL score is checked first. You get loan from bank only if CIBIL score is good. CIBIL score is calculated between 300 and 900. A CIBIL score of 750 or above is considered excellent. If you have this score, banks grant loans easily and at low interest rates. Check your CIBIL score if you too are planning to take a loan for home, vehicle or education in the near future. Because the Reserve Bank of India’s (RBI) new ‘Expected Credit Loss’ (ECL) framework may make it more difficult for customers with low credit scores to get a loan.

RBI’s ECL framework will come into effect from 1 April 2027. According to this system, the banks have to make provision considering the risk of possible loan defaults in advance. Hence, banks are likely to take a more cautious stance while lending. In particular, loan applications of applicants with a CIBIL score below 730 may be subject to stricter scrutiny. Such customers may require additional documents, additional guarantors or collateral for loan approval. In some cases, there is a possibility that the loan of such customers may be rejected or higher interest rates may be charged on such loans. CIBIL Score New Rules

According to experts, a large number of loan applicants in India have a CIBIL score below 730. So this change may affect many customers. On the other hand, customers with a CIBIL score of 730 or above are likely to benefit. Such customers can get faster loan approval, lower interest rates and better offers. CIBIL Score New Rules

But one important thing should be noted. RBI has not set an official minimum CIBIL score of 730. Loan approval is decided by each bank according to its own policy. Along with CIBIL score, income, job stability, existing loans and mortgage are also considered. Hence, paying EMIs on time, keeping credit card balances under control and maintaining a good CIBIL score will be all the more important if you are considering taking a loan in the future.