๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ โ ๐๐ ๐๐๐๐๐ ๐๐๐๐๐, ๐๐ ๐๐๐๐๐๐๐
In a groundbreaking move, the Modi Government has simplified lending rules, declaring that first-time borrowers cannot be denied loans solely due to the absence of a CIBIL score. This decision, reinforced by the Reserve Bank of India (RBI), marks a major step towards financial inclusion for youth, rural citizens, and first-generation entrepreneurs.
The RBI has clarified that it has never prescribed any minimum CIBIL score requirement for loan eligibility. Instead, banks and lending institutions must assess applicants based on income stability, repayment capacity, and employment record, rather than relying only on credit history.
โ Key Highlights
- No CIBIL history โ Loan denial
- Poor CIBIL score = Loan can still be rejected
- Focus shifts to income & repayment ability over past credit use
- Boost for first-time borrowers, rural youth, and startups
Financial experts believe this initiative will bring millions of unbanked citizens into the formal credit system, empowering new entrepreneurs, small businesses, and rural households. By removing the โCIBIL barrier,โ the government aims to strengthen grassroots economic growth.
The message from the government is clear:
โNo one should be denied a fair chance to borrow just because they are starting fresh.โ
