New Delhi, Aug 26 India’s credit information company, CIBIL, received 22,94,855 complaints in the financial year 2024-25, with 5,80,259 of those complaints linked directly to errors on its end, according to a regulatory disclosure by the agency.
CIBIL, which tracks the credit history of individuals and companies based on loans, repayments, and defaults, plays a key role in determining loan approvals, credit card eligibility, and even some job prospects.
A poor CIBIL score can block loans and affect employment opportunities.
In June, the Madras High Court upheld the State Bank of India’s (SBI) decision to cancel a candidate’s job appointment citing an adverse credit report.
The court observed that someone with a record of poor financial management could not be expected to responsibly handle the finances of others.
The agency has also faced scrutiny from Parliament and users over a lack of transparency.
Tamil Nadu MP Karti P. Chidambaram recently raised concerns in the Lok Sabha, saying borrowers have little recourse to correct errors in their credit histories.
“It’s actually a private company, called TransUnion, which is rating every one of us based on our credit history. But we do not know whether they are updating our credit history properly. There is no transparency. There is no way for us to appeal,” he said.
Many users have complained of receiving spam calls from lenders such as Bajaj Finance and PaisaBazaar after checking their CIBIL scores.
Some report that even routine credit inquiries, like checking scores on Google Pay or other portals, have triggered repeated calls offering pre-approved loans.
Experts say these issues underline the need for stricter oversight and greater transparency in credit reporting, particularly as more Indians rely on digital platforms for financial services.
Meanwhile, the Minister of Finance for State Pankaj Chaudhary has stated that banks should not reject loan applications from first-time borrowers simply because they have no CIBIL score.
“As part of best practices for credit institutions, Reserve Bank vide referred Master Direction dated 6.1.2025 has advised CIs that first time borrowers’ loan applications should not be rejected just because they have no credit history," said Chaudhary during the Monsoon Session.
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