Good news for those with poor CIBIL score! High Court reprimanded banks CIBIL Score
CIBIL Score – Nowadays, from taking loan to job, one name is heard a lot everywhere – CIBIL Score. Be it a bank or NBFC, anyone looks at your CIBIL score before giving a loan. If the score is good then it is easy to get a loan, and if the score is bad then it is rejected directly. But recently the Kerala High Court has given such a decision which has given relief to thousands of youth.
What is the whole matter?
Actually, there was a case of a student who had applied to the bank for an education loan. But his CIBIL score was not good because one of the two loans taken earlier was outstanding and the other had gone into NPA i.e. bad account. In such a situation, the bank refused to give education loan. The student knocked the door of the High Court out of helplessness.
What did the High Court say?
The court said in clear words that the education loan of the student cannot be rejected only on the basis of poor CIBIL score. The court reprimanded the bank and said that a 'human approach' should be adopted in the matter of giving loans. It is not right to just look at the score every time, especially when the matter is related to studies.
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The judge also said that the student is not the future of today, but the future of the country. Therefore, if he wants to take a loan for studies or job abroad and he also has a job offer, then the bank should not refuse only on the basis of CIBIL score.
What arguments were given by the bank?
The bank's lawyers said that according to the rules of RBI and Indian Bank Association, it is necessary to see the CIBIL score. The bank also cited a circular, which said that loans cannot be given to those with a poor score. But the student's lawyer said that he has a job offer abroad and he can repay the loan later.
In whose favor did the court give the decision?
The court ruled in favor of the student and said that a student's future cannot be ruined on the basis of CIBIL score alone. The court believed that the student's job is secure and he will be able to repay the loan.
Why is this decision special?
This decision is a relief for thousands of youth who could never repay the loan due to some reason and their CIBIL score fell. Especially for those students who want to do something big in the future, but their paths were closing just because of the score.
CIBIL score is now becoming an obstacle in jobs too
Another big thing is that now CIBIL score is also being seen in bank jobs. Institutions like IBPS have made it clear that to get a government job in a bank, the candidate's CIBIL score should be above 650. If someone has a bad credit history or a loan is pending, then his offer letter can also be canceled.
Keeping a good credit score is now a compulsion
Nowadays, a good CIBIL score has become necessary not only for taking a loan but also for reducing insurance premium, getting a credit card or getting selected in a job. Therefore, paying off loans and EMIs on time is no longer just a responsibility, it has become a necessity.
What do we learn from this decision?
Humanity should come first in matters related to studies and future.
Many a times there is compulsion behind a bad score, which is important to understand.
Students should be given a chance to prove themselves.
Banks should show some flexibility, especially when someone is qualified and has the right intention.
This decision has made it clear that no matter how strict the system is, there is always scope for humanity. This is a ray of hope for students that if their intention and hard work is right, the system will also stand with them.