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Congress MP in Lok Sabha Karti Chidambaram: Congress MP Karti Chidambaram on Wednesday (December 4) strongly criticized the Modi government regarding the loan given by the bank. The MP had cornered the government by raising issues regarding six rules related to the CIBIL score of the Reserve Bank of India, which plays an important role in loans. It is noteworthy that these rules are going to be implemented from next year 2025. The Congress leader said, ‘Common people are getting worried.’
‘After showing the CIBIL score, the bank is sending it back’
Congress MP Karti Chidambaram on Wednesday cornered the government over the Banking Laws (Amendment) Bill 2024 during the ongoing winter session of Parliament. He said, ‘Today if you go to a bank to take a loan, you are sent back only after showing your CIBIL score. ‘The CIBIL score updating organization is working very slowly and the common man is suffering the consequences of this.’
‘Looking at the credit history of 60 crore people’
Congress MP Karti Chidambaram said, ‘The work of updating CIBIL score is in the hands of a private organization and it is tracking the credit history of more than 60 crore people of the country and giving rating. But all this is being done without transparency, its effect is that most of the needy people are facing financial problems due to CIBIL and they are also facing a lot of difficulties in taking loans.
Why is CIBIL score important for loan?
First of all, it is important to know what is CIBIL score and why is it important to take a loan from any bank? Nowadays most people need to take a loan, whether it is to buy a new house or for their child’s education or for marriage. In such situations, people turn to banks and apply for loans. But it is not necessary that all the applicants get approval for the loan.
CIBIL score or credit score plays an important role in the bank loan process and this data is the main means of getting your loan approved. If this is true then the bank will not delay in giving you the loan. But if it gets damaged then getting the loan may stop. Through the data of CIBIL score, the bank finds out that you are capable of repaying the loan taken and are not delaying in returning it. That is, this is a factor that gives confidence to banks to give you a loan. Generally, if we look at the criteria set by banks, a person’s credit score ranges between 300 to 900 points and a CIBIL score above 700 is considered the best score.