Daybreak No one knows how Cibil rates your finances. Not even your bank
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Jul 16, 2025 Dive into the mysterious world of credit scores in India! Discover how CIBIL calculates your creditworthiness and why its methods remain a puzzle for many. Personal stories reveal the frustrating experiences of loan rejections. The discussion highlights the importance of transparency and financial literacy for borrowers navigating this complex system. Why is it so hard to understand your own score? Tune in for insights that might just change how you approach your finances!
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Purav's Loan Struggle
- Purav, a highly qualified and well-paid individual, struggled to get a loan due to a low credit score despite meeting all usual criteria.
- He is one of several borrowers unaware of what negatively impacts their creditworthiness, illustrating credit score opacity.
Mystery of Credit Scores
- CIBIL is one of four RBI-licensed credit info providers in India, oldest and most reliable, but credit score algorithms are mysterious.
- Neither borrowers nor banks fully understand how these scores are computed, causing confusion and unexplained loan denials.
Ankit's Credit Score Woes
- Ankit Bhasin, a Mumbai real estate businessman, was denied a 60 lakh rupee loan due to a low CIBIL score of 600.
- Despite decent finances, he struggles to understand and improve his credit score, showing practical difficulties borrowers face.