CIBIL Score 750: Why your Loan still gets rejected | RBI Rules Explained
Even with a CIBIL score above 750, loans get rejected due to factors beyond credit history. Banks assess job stability, existing liabilities, income, and past banking relationships. Frequent job changes, high EMIs, or multiple loan inquiries can lead to rejection. New RBI rules emphasize overall financial health, not just CIBIL, for loan approvals, especially for first-time borrowers.
New Delhi: Whenever it comes to taking a loan from a bank from a banking institution, it is imperative to mention the CIBIL score. CIBIL must be good to purchase a loan and it is considered better at 750. But, did you know that the loan gets rejected even if you have 750 CIBIL? Let us tell you in detail about the issues related to CIBIL score and the rules related to loans of RBI.
Even if the CIBIL score is above 750, the loan gets rejected because banks not only look at your score, but also check your overall financial position, job stability and liabilities label. If anything goes back and forth, you will not be able to get the loan even if the CIBIL score is fine.
CIBIL SCORE: RBI Loan Guidelines
Your income and job stability matter the most in getting a loan cleared. If you change jobs frequently or have been unemployed for a long time, banks consider you a bit risky. At the same time, if you are constantly working in the same field and are associated with a trustworthy company, then the bank feels confident. Apart from this, your existing debts are also very important. If 40-50% of your earnings are already going into EMIs, banks are hesitant to grant a new loan.
Many people apply for multiple loans or credit cards at the same time. This shows many "hard inquiries” in your report, which banks consider to be a sign of economic pressure. In such cases, the chances of loan rejection are increased. Also, if your old record with the bank you are applying to is not good. Such as missing EMI or loan settlement has been delayed. So it might even go against you.
In the new rules, the minimum condition of credit score for first-time borrowers has been removed. That means banks can no longer reject anyone just by looking at the low score. They will have to make a decision keeping in mind the customer's overall financial situation, loan repayment capacity and job stability.