If you were constantly facing loan rejection because of your low Cibil Score then this news will bring a big smile to your face. The Ministry of Finance has officially announced that from November major changes will be implemented in the loan approval system and for many types of loans the Cibil Score will no longer be compulsory. This change will especially benefit people who struggle to maintain a high score due to job or business issues.
Once the new rule starts millions of people will be able to get loans without worrying about Cibil Score. The government said that this decision has been taken to promote financial inclusion and to give relief to common citizens.
Why the Cibil Score Requirement Is Being Removed
Until now banks and finance companies treated the Cibil Score as the biggest factor for loan approval. Even a small mistake or delay in any old loan could lower the score and make it very difficult to get a new loan.
The government said that judging a person only on the basis of a score is not fair. Many people pay their EMIs on time but one delay ruins their entire score. To solve this issue the new rule is being introduced.
What the New Rule Says
According to the new rule banks and NBFCs will no longer depend only on the Cibil Score. They will now consider multiple factors for loan approval. These include your income job stability cash flow bank statement and repayment behaviour.
This means even if your Cibil Score is low but your income is stable or you can pay EMIs on time then you will easily get a loan. This rule will help the most in home loans personal loans and small business loans.
Who Will Benefit the Most
People with a Cibil Score below 600 will benefit the most because they are usually rejected by every bank. Small business owners job seekers and people living in rural areas will get the biggest relief from this new rule.
Women will also benefit a lot because many women apply for loans for the first time and have no previous credit history. Now they can also apply and get loans without facing unnecessary hurdles.
How Banks Will Approve Loans Now
With the new rule banks will follow a more practical verification process. They will check income proof bank activity digital payment history and your monthly expenses before approving the loan.
KYC documents and Aadhaar verification will also be strengthened to make the process faster and safer. This system will help banks reach more customers while giving fair chance to everyone.
Loan Process Will Become Easier
The government has also announced that digital loan processing will be made faster. People will be able to apply for loans easily through mobile apps or websites without long paperwork.
Loan approval time will also come down and small loans may be approved on the same day. This will help people fulfil their financial needs on time and improve transparency in the loan system.
Final Words
This decision of the Ministry of Finance is a huge relief for millions of people who were struggling with loan rejection because of low Cibil Score. From November the new rule will make the loan process easier and more accessible for everyone.
Now people can take loans without fear or stress and move forward to achieve their goals. This change will increase financial inclusion and help many families become self dependent.
⚠️ Disclaimer:
This article is based on government announcements and news updates. Loan terms and policies may differ from bank to bank. Always check details with your bank or NBFC before applying for a loan.
