Headline: Credit Score Zero? New Loan Hurdles for India’s Unbanked
New Delhi, July 18: Millions of Indians, particularly those without prior credit history, face unforeseen challenges accessing loans. A lack of a CIBIL score, the crucial creditworthiness rating, significantly restricts their borrowing options.
This isn’t necessarily a reflection of poor financial management. Many simply haven’t had the need or opportunity to build a credit profile through loans or credit cards.
The problem intensifies when urgent financial needs arise. Without a CIBIL score, individuals may find themselves excluded from various short-term loan schemes, leaving them with limited choices.
This highlights a critical gap in India’s financial inclusion efforts. Addressing this requires innovative solutions to assess creditworthiness for those without a formal credit history, ensuring access to vital financial services for all. The government and financial institutions need to collaborate on strategies to bridge this widening gap and empower India’s unbanked population.
