By Admin 
Credit Card CIBIL Score: In today’s times, taking a loan is also becoming a very difficult process. Buying a house, a new car, taking an education loan will not be as easy in the coming years if your CIBL score is less than 730. Now there is going to be a big change in the banking rules from RBI, due to which creditors i.e. bankers can be more cautious about whom they are giving loans to.
In fact, the Reserve Bank’s new Expected Credit Loss (ECL) framework, which will come into effect from April 1, 2027, will completely change the way banks approach borrowers. Although the move is aimed at making the banking system stronger and safer, it could also mean tougher scrutiny for millions of loan applicants.
What is the purpose of bringing new structure of RBI?
In fact, banks usually set rules for bad loans only when a borrower fails to make payments for a long period of time and the account turns into a non-performing asset (NPA). In such a situation, the new ECL system completely changes this perspective. Instead of waiting for default to occur, banks will have to anticipate the expected losses and set aside funds accordingly. Its purpose is to identify risks early and ensure that bankers are better prepared for future losses.
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Its impact on borrowers with low credit scores?
Due to the new rules, the credit score is likely to become better than before. When banks have to come up with more regulations for risky loans, they actually become more cautious. Therefore, borrowers with weak credit history can be scrutinized more closely. Some may be offered loans at higher interest rates, while others may be asked to provide more security or guarantee.
For your information, let us tell you that this is especially important, because a large part of Indian borrowers fall in this category. According to industry estimates, about 62 percent of loan applicants have a CIBL score of less than 730.
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What can borrowers do?
Regarding this situation, financial planners say that the best way to cope with these changes is to maintain a better credit profile. Paying EMIs on time, paying credit card bills regularly and avoiding excessive debt can all help in improving the credit score. Even small improvements in payment behavior can make a big difference over time.