NEW DELHI : The government has clarified that borrowers applying for loans for the first time will not be automatically turned away for lacking a credit score.

Responding in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that the Reserve Bank of India (RBI) has not mandated a minimum CIBIL score as a condition for availing bank loans. He noted that lenders must assess applications on the basis of multiple factors and not reject them outright for “no credit history.”

As per the RBI’s Master Directions issued on January 6, 2025, banks are required to evaluate applicants using varied inputs such as repayment track records, loan restructuring data and delinquency indicators, rather than relying solely on credit scores.

Chaudhary also reminded that Credit Information Companies (CICs) like CIBIL can charge up to ₹100 for sharing a credit score report, but they are obligated to provide one free detailed credit report every year to individuals with a credit history on file.

The clarification offers relief to first-time borrowers, ensuring that lack of a CIBIL score does not become a barrier to accessing formal credit.