First-time borrowers can get loans without CIBIL score, says Finance Ministry
The Ministry of Finance has said that people applying for loans for the first time do not need a minimum CIBIL score. During the monsoon session of the Lok Sabha, Minister of State Pankaj Chaudhary explained that the Reserve Bank of India (RBI) has not fixed any credit score requirement for loan approvals.
RBI guidelines, updated on January 6, 2025, ask banks not to reject loan applications just because the borrower has no credit history.
A CIBIL score is a three-digit number (300–900) that reflects a person’s credit history. While banks often use this score to decide loan eligibility, it is not the only factor considered.
India has four licensed credit bureaus — TransUnion CIBIL, Equifax, CRIF High Mark, and Experian — which provide credit ratings. RBI also requires them to give one free credit report every year and caps the charge for extra reports at ₹100.
The Finance Ministry clarified that each bank takes lending decisions based on its own policies, commercial judgment, and RBI guidelines. A TransUnion CIBIL study showed that 41% of first-time borrowers in India are from Gen Z.
