CIBIL Score Update: Rules regarding CIBIL score have changed, what will be the impact on loan takers?
The importance of CIBIL i.e. credit score increases a lot when taking a loan. If your credit score is good and you also meet the other parameters, then you will get a loan immediately. But, if the credit score is bad, then there is a lot of difficulty in getting a loan or credit card. Many times the bank or NBFC refuses directly.
Now the Reserve Bank has issued a new rule for banks and financial companies regarding credit score. This was announced recently by RBI Governor Shaktikanta Das. Let us know what the new rule is and what effect it will have on the customers along with the banks.
Credit score has to be updated in 15 days
Under the new rule, now banks and non-banking financial companies (NBFCs) will have to update the credit score of the customers every 15 days. They will have to send the credit information of the customers, such as whether he has repaid the loan on time or not, to the Credit Information Companies (CIC) every two weeks. CIC will update that information quickly. This will benefit both banks and customers.
The customer's CIBIL score can be updated on the 15th of every month and at the end of the month. If the Credit Institutions (CI) and Credit Information Companies (CIC) want, they can also fix a fixed date for themselves to update the data at an interval of 15 days.
How will banks and customers benefit?
RBI's new rule will be beneficial for customers along with banks. Banks and NBFCs will be able to decide better who to give loans to and who not to by updating the credit score quickly. If a customer defaults on the loan, it will be known within 15 days.
This will also benefit customers, as their credit scores will be updated quickly. With this, poor credit scores will be able to know quickly whether their credit score is improving or not. At the same time, the risk assessment of good credit scores will be more accurate and they will be able to get loans at cheaper rates.
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