Latest news with #CIBIL
India.com
8 hours ago
- Business
- India.com
RBI's big order on CIBIL score! asked credit information companies to update…, will this benefit or harm you?
The Reserve Bank of India (RBI) has issued a major directive regarding CIBIL scores, which are crucial for availing loans. The RBI has mandated that CIBIL scores must now be updated in real-time. It stated that this move will make the loan disbursal process more transparent and efficient, ultimately benefiting customers. RBI Deputy Governor M Rajeshwar Rao has asked credit information companies like TransUnion Cibil to switch to real-time data reporting from fortnightly at present. RBI On CIBIL Score Speaking at a conference organised by Cibil here on Tuesday, Rao said quicker relaying of data from the CICs will help in deepening trust, efficiency and transparency in the system for everybody. 'We must aspire to more frequent updates. Real-time or near-real-time credit reporting will improve underwriting precision, enable timely reflection of borrower actions like loan closures or repayments and deliver a superior consumer experience,' Rao said. Admitting that this entails costs because of investments in technology, process reengineering, and change management, Rao underlined that the benefits will far outweigh the costs. Whom Will It Benefit? This is a significant relief for those seeking home loans, personal loans, or auto loans. In its latest order, the RBI said that information related to CIBIL scores must now be provided in real-time, as opposed to the earlier practice where companies updated it once every 15 days. This decision is expected to offer considerable benefits to loan applicants. Rao also asked the CICs and other companies competing with Cibil, including Experian and CRIF High Mark, to move towards having a 'unique borrower identifier', which is uniform across the system. 'Another key challenge is identity standardisation. CICs rely on credit institutions to provide accurate and validated IDs. Without this, duplication and misreporting remain risks,' he said, explaining the rationale for having such a system. Rao also exhorted the industry to ensure that innovation is 'responsible and accountable', and not at the cost of an individual's rights to data privacy. (With Inputs From PTI)
Time of India
20 hours ago
- Business
- Time of India
Ex-HDFC and ICICI Bank employee denied job by SBI for negative CIBIL score on loans taken for younger brother; loses legal challenge in High court
Academy Empower your mind, elevate your skills How did this case start? July 27, 2020: State Bank of India issued a notification for filling up the vacancy of the Circle Based Officer (CBO) post. He (candidate) applied for this job. State Bank of India issued a notification for filling up the vacancy of the Circle Based Officer (CBO) post. He (candidate) applied for this job. February 16, 2021: This person was successful in the examination and called for an interview. This person was successful in the examination and called for an interview. March 12, 2021: This person, having cleared medical examination, certificate verification and CIBIL and other document verification, was issued an appointment order. This person, having cleared medical examination, certificate verification and CIBIL and other document verification, was issued an appointment order. April 1, 2021: He was thereafter asked to submit his explanation to the CIBIL report which was based on his past records of belated repayment of loans. He submitted his explanation along with CIBIL report for all the accounts and requested the SBI to permit him to continue duty. SBI said under Clause 14 (ii) and Clause 1(E) candidates with record of default in loan repayments can't get a job at SBI The SBI relied on Clause 14 (ii) (General Information), Clause 16 (Disclaimer) and Clause 1(E) (Eligibility Criteria) and submitted that the petitioner (candidate) had given false and untrue declaration and hence his appointment was cancelled. According to the SBI, one of the eligibility criteria stipulated was that the candidates with records of default in repayment of loans, adverse report of CIBIL and other external agencies were not eligible for appointment. According to the SBI, the petitioner's CIBIL report revealed adverse credit history in repayment of loan, credit card usage and therefore, the petitioner was found ineligible under Clause 1(E) of the eligibility criteria. When the petitioner (candidate) was asked to submit an explanation to the CIBIL report, he admitted that he availed personal loans for the purpose of his brother's business. What did the candidate's CIBIL report say? August 31, 2018: Personal loan obtained for Rs 1,30,000 was irregular between the period November 2018 to July 2019. During this period he was gainfully employed in ICICI Bank as Deputy Manager. The loan was written off by the credit institution and a suit was filed against the candidate for recovery of the loan. This is a clear evidence of his financial indiscipline. June 27, 2018: Personal loan obtained for Rs 90,000 was irregular during the period Dec 2018 to April 2020. During this period, he was gainfully employed in ICICI Bank as Deputy Manager. November 3, 2017: Personal loan availed for Rs. 1,50,000/- shows in CIBIL report as an overdue of Rs 2,770. 'The above personal loans availed by the candidate are sanctioned by the credit institutions based on his repaying capacity. Though he was able to repay, he wilfully defaulted on the loan repayment.' March 24, 2017: The credit Card facility availed by the candidate from HDFC Bank was irregular over a period from Jan 2019 to October 2019 and later settled post write-off during October 2019, making a loss of Rs 40,000. February 10, 2017: Another credit card facility availed by the candidate since 10.02.2017, with a credit limit of Rs 35,000 remained irregular for 37 days during March 2019 to April 2019. The petitioner (candidate) having participated in the recruitment process as per the notification (job notification), cannot now turn around and state that Clause 1(E) should be read to mean that no dues were outstanding on the date of the notification. More so, when the said clause is not challenged. One more aspect that needs mention here is that the bank took a prudent decision that the candidates with a history of default in repayment of loans and adverse CIBIL and other external agencies report were ineligible. The probable rationale behind the said criteria may be that in banking business, the employees deal with public money and therefore financial discipline needs to be strictly maintained. Further there must be efficiency in handling public money and obviously a person with poor/ or no financial discipline cannot be trusted with public money. Therefore this Court under Article 226 of Constitution of India will not consider the relevancy of the eligibility criteria prescribed by the respondents (SBI). How does this judgement impact private and government bank job seekers? When starting a new business, it's common to turn to friends and family for some initial funding. Applying this logic, a younger brother reached out to his older brother, who was working at ICICI Bank at that time, for some money to kickstart his business. To support his brother's business the older brother ended up taking several personal loans and kept doing so even after he left ICICI Bank to take a position as a deputy manager at HDFC Bank This practice of borrowing money to invest in his younger brother's business eventually led him to a point where he had to take out multiple personal loans from various lenders. In the end, it resulted in a never-ending cycle of personal loans and credit card long as the younger brother's business was thriving, he could keep up with the loan EMIs, but after the younger brother had an accident, things took a turn for the worse. With the business not bringing in enough cash, the older brother struggled to handle the loan repayments with just his salary and thus defaulted on the loan did manage to pay off a few loans, but for some personal loan and credit card debts, he fell behind on payments. One lender, from whom he borrowed during his time at ICICI Bank, even filed a recovery suit in court to recover the money after he defaulted on the repayment. In 2019, even HDFC Bank had to write off a loss of Rs 40,000 because he defaulted on his credit card debt of all of these incidents, his CIBIL score took a really bad hit, leading to his rejection from the State Bank of India SBI ) Circle Based Officer (CBO) position, even after passing the exam, acing the interview and receiving an appointment SBI turned him down for the job the older brother filed a Writ Petition in the Madras High Court under Article 226 of Constitution of India, since he had already quit his position at HDFC Bank to take up this job at cited a March 20, 2021 letter issued by the CGM-HR of SBI stating that default disputes about loan repayments could be regularised/rectified before joining and so he also should be given the chance to do the June 2, 2025, the Madras High Court rejected his arguments and ruled that SBI is correct in its stance and as per Clause -1(E) of SBI's internal rules, this cancellation of appointment based on adverse CIBIL score is Madras High Court said: '...The bank took a prudent decision that the candidates with a history of default in repayment of loans and adverse CIBIL…were ineligible. The probable rationale behind the said criteria may be that in banking business, the employees deal with public money and therefore financial discipline needs to be strictly maintained.'Keep reading to know how a CIBIL score became the reason for denial of a bank job with SBI and how this judgment impacts private and public bank job to the order of the Madras High Court dated June 2, 2025, here's the timeline of events:However, despite his explanation, the SBI cancelled his appointment on the ground of adverse credit history reflected in the CIBIL report. Aggrieved by the same, he filed a writ petition in the High read: Matrimonial Dispute: Husband loses job after wife wins case; Know how this impacts private and government employees SBI's lawyers filed a written response to the person's writ petition. Here's what the bank's lawyers wrote:The Madras High Court said: 'According to the petitioner (candidate) due to the unforeseen situation of his brother meeting an accident, he was unable to manage the loan repayment. The petitioner clearly admitted his default in repaying the personal loans and therefore in my view, the respondent-bank cannot be faulted for invoking Clause 1 (E) of the Notification.'The following observations were made in the CIBIL report :(no facts or figures were changed, everything is as per the High Court judgement)SBI said: 'Though the CIBIL report shows only 9 irregular credit facilities, there were more than 50 credit enquiries against the candidate, during the period 2016 to 2021, ranging between Rs 1000 and Rs 30,00,000. Majority of the credit enquiries being personal loans. Banks considers the abnormal number of credit enquiries against the candidate as severe financial indiscipline. Therefore, there is no significance to the contention raised by Petitioner (candidate).'Madras High Court final judgement: SBI rightfully rejected job to an adverse CIBIL candidateThe Judgement: 'I find no merits in the writ petition and hence, the same is liable to be dismissed. Accordingly, the writ petition is dismissed. No costs. Consequently, the connected Miscellaneous Petition is closed.'The Madras High Court applied the precedent laid down in the judgment of the Supreme Court of India in Swamy v. State of A.P. reported in (1990) 1 SCC 288. The Court said:ET Wealth Online has asked various lawyers about how this judgement may impact prospective bank job seekers, here's what they said:In practice, most of the banks and financial institutions in India check CIBIL scores to check the financial discipline of the candidates. A CIBIL score check is necessary for a role involving financial transactions, as hiring an employee with a bad, flagged financial past record can be risky both financially and judgement upholds that the employer can set the eligibility criteria as per the requirements of the position. In my opinion, if the criteria are not discriminatory or excessive, the same will be upheld by the courts, like what happened in this case. Relying on the CIBIL score of an employee or prospect for a role in the bank can neither be called discriminatory nor excessive, and the candidates should be mindful of the requirements of the job roles they are applying for. If there are errors in the CIBIL report, the employee or prospect can prove his job-seekers, the judgment appears to reiterate the importance of carefully reviewing the eligibility criteria and conditions before participating in the selection judgment also highlights that a record of a personal trait of a candidate, for instance financial indiscipline reflected by a poor credit history, can be lawfully considered by employers for assessing candidates for jobs in banking and financial sector, where such discipline is implications could also be relevant for similar jobs with private sector banks where it is customary for employers to also retain a right to conduct background verification checks before confirming a candidate's seeking employment in the banking sector should carefully review the details in recruitment notices and maintain a good credit record, as a low CIBIL score may affect their job prospects. If they consider the selection criteria to be unjust, they should pursue appropriate legal recourse challenging such not all banks check CIBIL scores of prospective employees. But it is common practice for banks and financial institutions to check the credit scores of candidates, especially for positions that involve handling financial transactions or managing sensitive banking involves a high degree of trust and fiduciary responsibility, financial discipline and creditworthiness are seen as indicators of a candidate's ability to manage public money responsibly. A good credit score can reflect positively on an individual's financial management capabilities and trustworthiness whereas a poor or default-ridden credit history may reflect negatively on an applicant's personal financial management and, by extension, raise concerns about their suitability for roles in banking and Madras High Court's ruling highlights the importance of CIBIL scores and credit reports for banking job applicants, as these factors can affect their eligibility. The Court observed that banks can as part of their selection process review CIBIL scores/reports of job applicants. It clarified that repaying loans before applying does not guarantee employment and that banks can assess the applicant's overall creditworthiness through the CIBIL judgment highlights that if an applicant disagrees with any eligibility condition or clause in the recruitment notification or circular, particularly one related to CIBIL scores, they must specifically challenge it. If the validity of the clause is not contested, no interpretation issues can occur, and the bank's decision based on that clause will generally be upheld.
NDTV
2 days ago
- Business
- NDTV
IBPS PO Vacancy 2025: Registration Begins For 5,208 Posts, Check Eligibility, Deadline
IBPS PO Recruitment 2025: The Institute of Banking Personnel Selection (IBPS) has opened the registration window for the Probationary Officer/Management Trainee (PO/MT) 2025 recruitment. Eligible candidates can now submit their applications online by visiting the official website - The last date to apply and pay the application fee is July 21. Vacancy Details A total of 5,208 vacancies have been announced across various participating banks. The bank-wise vacancies are as follows: Bank of Baroda - 1,000 Bank of India - 700 Bank of Maharashtra - 1,000 Canara Bank - 1,000 Central Bank of India - 500 Indian Overseas Bank - 450 Punjab National Bank - 200 Punjab and Sind Bank - 358 Indian Bank, UCO Bank, and Union Bank of India have not disclosed their vacancy details yet. Eligibility Criteria To apply for IBPS PO 2025, candidates must meet the following requirements: Age Limit: 20 to 30 years as on July 1, 2025. Relaxation in the upper age limit is applicable for candidates from reserved categories. Educational Qualification: A bachelor's degree in any discipline from a recognised university. Credit History: Applicants must maintain a satisfactory credit record at the time of joining. Banks may cancel offers if the credit report is not updated or if adverse remarks are not resolved before joining. "Those candidates whose CIBIL or other similar agencies has not been updated before the date of joining, have to either get the status updated or produce the NOCs from lender to the effect that there is no outstanding with respect to the accounts adversely reflected in the report, failing which the letter of offer may be withdrawn / cancelled. The final discretion in this regard remains with the allotted Bank," IBPS stated in its notification. Application Fee SC/ST/PwBD candidates: Rs 175 All other candidates: Rs 850 IBPS PO Recruitment 2025: Important Dates Application & Fee Payment Window: July 1 to 21, 2025 Pre-Examination Training: August 2025 Prelims Admit Card Release: August 2025 Preliminary Examination: August 2025 Prelims Result Declaration: September 2025 Mains Admit Card: September/October 2025 Main Examination: October 2025 Mains Result: November 2025 Personality Test: November/December 2025 Interview Rounds: December 2025/January 2026 Provisional Allotment: January/February 2026 IBPS PO Recruitment 2025: Exam Structure Personality Test: Those who clear the Main examination will be called for a Personality Test (self-report). Personality profile of the candidates will be placed before the Interview panel. The personality test will be non-qualifying in nature. However, appearing in the personality test will be mandatory for being eligible for appearing for the Interview process. For detailed information, candidates are advised to read the official notification available on the IBPS website.
Time of India
2 days ago
- Business
- Time of India
IBPS PO 2025: Registration starts for 5208 posts at ibps.in, check direct link to apply here
The Institute of Banking Personnel Selection (IBPS) has officially released the notification for the Probationary Officer/Management Trainee (PO/MT) recruitment exam for the year 2025. With a total of 5208 vacancies across various participating public sector banks, the online registration process is now live on the official website — Congratulations! You have successfully cast your vote Login to view result Candidates who meet the eligibility criteria and are interested in applying can now access the direct application link below. IBPS PO 2025: Key dates to remember Candidates planning to appear for the IBPS PO 2025 exam should take note of the complete schedule to avoid missing any crucial deadlines. From registration to final allotment, here's a quick look at the important dates you need to keep track of: Online application & edit window: July 1 to July 21, 2025 Payment of application fees: July 1 to July 21, 2025 Pre-examination training (PET): Scheduled for August 2025 Prelims admit card release: August 2025 Preliminary exam dates: August 2025 Prelims result declaration: September 2025 Mains admit card availability: September/October 2025 Main examination: October 2025 Mains result announcement: November 2025 Personality assessment: November – December 2025 Interview rounds: December 2025 – January 2026 Provisional allotment of banks: January – February 2026 Participating banks & vacancies breakdown The IBPS PO 2025 recruitment drive aims to fill a total of 5208 positions in the following public sector banks: Public sector banks Posts Bank of Baroda 1000 Bank of India 700 Bank of Maharashtra 1000 Canara Bank 1000 Central Bank of India 500 Indian Overseas Bank 450 Punjab National Bank 200 Punjab & Sind Bank 358 Indian Bank, UCO Bank, and Union Bank of India Yet to be announced Eligibility criteria for IBPS PO 2025 To apply for IBPS PO 2025, candidates must fulfill the following conditions: Age limit: Applicants must be between 20 and 30 years as of July 1, 2025. Age relaxations apply to candidates from reserved categories as per government norms. Educational qualification: A bachelor's degree in any discipline from a recognized university is mandatory. Credit standing requirement: Candidates should maintain a healthy credit history. Those with negative remarks on their CIBIL or similar reports will need to rectify their status before joining or furnish No Objection Certificates (NOCs) from the respective lenders. Failure to do so may lead to cancellation of the appointment. Note: Final discretion regarding credit status rests with the assigned bank. Application fee for IBPS PO 2025 • ₹175 – For SC/ST/PwBD candidates • ₹850 – For General and all other category candidates Interested candidates can apply online through the official IBPS portal. IBPS PO 2025: Direct application link For more details and official guidelines, candidates are encouraged to read the complete notification here.
Mint
3 days ago
- Business
- Mint
Latest personal loan interest rates: Which bank offers the lowest rate?
With the Reserve Bank of India (RBI) cutting repo rates by 100 bps (1%) since the beginning of 2025, personal loan interest rates have come down. With the latest rate cut of 50 bps (0.5%) by the RBI in June, you can now avail personal loans for 9% interest. But you have to meet the specified eligibility norms to access loans at lower rates. Private sector lenders such as Axis Bank offer personal loans for 9.99% per annum. Personal loans given by Indian Bank and Bank of Maharashtra are among the cheapest and come with an interest rate of 9%. Here is a guide on banks offering personal loans at lower interest rates and eligibility criteria. Eligibility: The borrower should have a CIBIL score of 800 and above, she/he should be a confirmed employee of central government/state government/ public sector undertakings (PSUs)/ government educational institutions and should have a salary account with the bank for getting personal loan at 9% interest. If the CIBIL score is between 776 and 799, the interest rate will be 9.3%, for a score between 750 and 775 it will be 9.8%. If the person has an account with another bank, the interest rate will be 9.8%, 10.3% and 10.8% respectively for CIBIL scores of 800 and above, 776-799 and 750-775. Confirmed employees of 'private/public limited company' having external rating 'A' and above can get personal loans at 9.8%, 10.3% and 10.8% interest for CIBIL scores in the range cited above. For availing the loan, the applicant should have a minimum annual income of ₹ 3 lakh. The applicant should provide last one-year ITR (Income Tax Return)/Form 16 from the current employer. The borrower should be between 21 years and 58 years of age. The repayment period should not exceed retirement age or 60 years of age, whichever is lower. Processing fee: 1% of the loan amount plus GST Eligibility: The bank offers low-interest personal loans for permanent employees with minimum service/ experience of two years with government/quasi-government/ boards/ endowments/ reputed companies/ corporate industrial establishments. Take home pay (after proposed EMI) should not be less than 40% of the gross salary. If salary is credited with the bank, takeover is permitted subject to compliance of norms. The minimum age is 21 years and repayment tenor will be fixed such that the loan gets closed three months prior to superannuation. Processing fee: For government/PSU employees: Nil. For others: 1% on the loan amount; Maximum ₹ 10000 Eligibility: Salaried employees, salaried doctors, employees of public and private limited companies, government sector employees including PSUs, central and local bodies. Minimum age of 21 years and maximum age of 60 at the time of maturity of the personal loan. Minimum net monthly income: ₹ 15000 for Axis Bank customers and ₹ 25000 for other customers. Processing fee: Up to 2% of loan amount plus GST Eligibility: Salaried or self-employed, aged between 21-60 years and have a CIBIL Score of 730 and above Processing fee:2% of the total loan amount (including GST) Interest rate: 10.3%-15.3% Eligibility: Employees working with government sector (central government/ state government/ railway/ police/ PSU), defence sector (Defence/ Indian Coast Guard/ Central Armed Police), corporate sector Government/ Defence Sector employees: Six months Corporate Sector employees: 12 months Age: 21-60 years. Loans to Government/Defence sector employees in service and more than 60 years old may be considered on a case-to-case basis. Minimum Net Monthly Salary: Government/Defence sector employees: ₹ 20000. Corporate sector employees: ₹ 25000 Employees of private limited companies, employees from public sector undertakings, including central, state and local bodies Individuals between 21 and 60 years of age Individuals who have had a job for at least two years, with a minimum of one-year with the current employer Those who earn a minimum of ₹ 25000 net income per month. Processing fee: Up to ₹ 6500 plus GST, stamp duty and other statutory charges will be as per actuals Interest rate: Between 10.80% and 16.50% per annum Eligibility: Personal Loan eligibility criteria for 'Salaried individuals' Age: Between 20 and 58 years Net salary**:Minimum monthly income of ₹ 30000 Total work experience: Two years **The minimum salary requirement will differ depending on the profile (type of employer, having a relationship with ICICI Bank etc.) of the customer. Processing fee: Up to 2% of the loan amount plus applicable taxes. Interest rate: 12.3% onwards. Applicable government taxes, levies, etc. are over and above fees and charges. Eligibility: Minimum age should be 21 years. Maximum age at personal loan maturity should be 60 years or retirement age whichever is earlier. Minimum net monthly income should be ₹ 15000. The applicant should have completed minimum two years in employment and minimum one year in the current organisation. Should have completed a minimum one year of stay at the current residence, if rented. Processing fee: Up to 2.5% of the loan amount, Stamp duty (as per the applicant's residence state), documentation charges (depending on the loan amount), GST and other applicable government taxes, levies. Interest rate: Starting from 10.99% per annum Eligibility: Individuals aged between 21 years and 60 years are eligible. They should be employed with an MNC, public limited company, or private limited company. Applicants must possess at least one year of work experience and should be a graduate or diploma holder. For a Kotak Mahindra Bank Salary Account holder: Minimum net monthly income of ₹ 25000 For a non-Kotak Mahindra Bank Salary Account holder: Minimum net monthly income of ₹ 30000 Processing fee: Up to 5% of the final loan amount plus taxes. This will be deducted from the loan amount at the time of disbursal. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
