A recent research across 7 Indian cities by an entity called Home Credit India, a provider of consumer finance, brought out a worrying statistic. As many as two out of three borrowers who participated in the survey were completely unaware of their CIBIL score. What’s even more worrying is the fact that most of the individuals who participated in the survey had availed loans, some multiple even, and yet they have no idea of their CIBIL score.
As a nation, though we’ve come a long way with respect to financial inclusion, we’re still behind when it comes to financial literacy. And that’s something that we’re hoping to change with this article.
The CIBIL score is basically an indicator of the credit worthiness of an individual. The Credit Information Bureau India Limited, which is an RBI-registered credit rating agency, is the entity behind the CIBIL score.
The score ranges from 300 to 900, with 300 being the lowest and 900 being the highest. The CIBIL score of an individual is widely used by lenders and financial institutions to determine their credit worthiness. That’s not all. Depending on the CIBIL score calculation of an individual, the interest …