CIBIL Score: Congress MP Karti Chidambaram asked such a question that there was uproar in the entire parliament and this question was such. This raised questions on the entire banking system. Karti's question was on CIBIL. Yes, the same CIBIL whose score is bad, then you will not be able to take either housing loan or education loan. You will not even get a personal loan. You will not be entitled to a credit card as well. You may have to run around to get money from outside for business or household needs.

What is CIBIL score, who decides it

CIBIL score is a three digit number. It determines your capacity to borrow or take a loan. What is your creditworthiness to repay it. It is calculated on the basis of repayment of earlier loans and current financial capacity. In this, the lowest score is 300 points and the highest is 900 points. It depends on many factors. Whoever has a PAN card, his CIBIL score keeps getting decided automatically. Banks and financial institutions decide a person's loan taking capacity on this basis. That is, financial institutions decide on this basis that up to what limit the person will easily repay the loan if given.

What happens if your CIBIL score is very poor?

If a person's CIBIL score is very poor, financial institutions can refuse to give a loan to that person. The work of determining CIBIL score is done by a company called Credit Information Bureau India Limited (CIBIL). This company was formed in the year 2000 on the basis of the report of the Siddiqui Committee of the Reserve Bank. After its merger with the US-based Trans Union Company in 2003, its name became Trans Union CIBIL Limited. This is a private company, which is entrusted with the task of managing the CIBIL score of 60 crore people of India. There have been controversies about this score earlier as well. Karti Chidambaram has also demanded the formation of a government agency under the Reserve Bank for such scores.