24 Aug 2023 - No Minimum CIBIL Score Requirement

1. The government clarified that first-time borrowers are not required to have a minimum CIBIL score for loan approval. The RBI has directed banks not to automatically reject loan applications from individuals with no credit history or a low CIBIL score.

2. Due Diligence is Essential:
   Although a CIBIL score is not mandatory, financial institutions are urged to conduct thorough due diligence. This includes checking the applicant's payment history, past debts, overdue payments, restructured loans, and written-off accounts.