Shocking ! – Job Rejection due to Bad CIBIL Report

POSTED BY Jagoinvestor ON August 20, 2012 COMMENTS (133)

Your credit score is going to affect your Employment. You can face job rejection due to it! Yes – that’s happening already. A lot of companies especially Finance and Software Companies have started asking candidates to present their CIBIL report and score (or any other credit report) at the time of the interview and it has started playing a role while selecting a candidate. So if your credit report is bad because you have not paid your loans on time or if you settled your loans in past, you might get rejected in your next job interview provided your prospective employers look at your cibil report/score. Note that it’s standard practice internationally to check credit score before employment and various other purposes.

Employers looking at cibil report at job interviews

3 Real-Life Example of Job Rejection due to Bad Cibil Report

I am sharing with you 2 real-life example’s where credit report was asked before the interview and they were eventually rejected (there can be other parameters for rejection apart from the bad credit report)

Example #1 – How Sapan has rejected a job in HDFC

Sapan a reader of this blog faced job rejection twice by HDFC Bank and an NBFC just because there was a credit card dispute on his credit report and he could not convince them that it was his fault.

I lost the Job twice in HDFC Bank even after got selected for Relationship Manager but rejected by HR team because of my credit card dispute which was stolen and unauthorized transaction took place of 50000/-. In the end of the day I was failed to convince the HR team and I was forcefully to pay 50000/- and got a job in one of the NBFC which also checked my CIBIL before getting job. – from facebook comments below

Example #2 – Rejection by Indian company for a Bad Credit Report from the US

Even those who are coming from US to India and looking for Jobs, employers are asking their US credit score – Here is an incident which happened with Nandish’s friend, this sharing was from Nandish

He was in US for almost 8 yrs. During that time he created a lot of debt for himself. His job transfer got him back in India, he knew his credit score in US is bad and he never bothered about it as he thought now he will be staying in India. His job was going on well and his life was comfortable. On one fine day he decided to quit his job and started his own business. He could not make it in business, his social responsibilities forced him to get once again in job. He started applying in different companies and finally one Bangalore based company offered him 16-20 lac pay package. He was excited and thrilled to get this offer. This company was US based and one of the most important criteria they would check is their US credit score…My friend tried hard to convince them but finally he was not selected. To improve his US credit score he is now really working hard but nothing seems to be working for him.

Example #3 – How an Indian Bank asked for CIBIL report

One of the readers was asked for her CIBIL report when she applied for a job in an Indian Bank, She applied for CIBIL report and handed over to the bank, the bank has not followed up with her after that.

I have applied for a job in bank and they have to check my CIBIL. I have a loan taken just 2 months back and only one installment hit my a/c thru cheque and tht was honored. Bank want to check my CIBIL before hiring. I haven’t had any bad experience but ya this is first time my CIBIL gonna check… and might be there is some problem according to bank ppl as they have not reverted me after my cibil check.

Quotes from some of the latest articles on media

  • If you thought you had only to worry about banks getting hold of your credit histories, there’s more. Of late, employers too have been asking prospective candidates to submit their Credit Information Report from CIBIL. Your employability could be affected by the report, as it happened with an acquaintance of mine, who was refused employment in a bank because of his poor credit history. Would you rather pay for your mistakes at a later stage in life or plan for those loan EMIs and pay them on time? – source
  • Some employers may also ask a potential employee to submit his/her credit report during the hiring process. Those with poor credit scores may be rejected in favor of those who have demonstrated better financial planning. Thus, the credit score and report may become a vital ‘reputation’ collateral even for employment in the future. – Source
  • Companies in western nations are known to make credit checks before taking people on board. In India, companies have started checking the creditworthiness of an individual, especially for senior-level hiring. Employers ask the candidates to produce their credit report at the time of interview because employers cant access it directly.  The trend is picking up in financial and IT sector companies. – said Harshala Chandorkar, senior vice president, consumer relations, Credit Information Bureau (India) Limited (Cibil). – Source 

Why Do Employers want to check your Cibil Report?

If you think for a minute and try to understand it from an employer’s perspective, you will realize that there are some reasons why employers might want to look at your CIBIL report before they hire you. Here are some –

1. It’s part of “background check”

A very valid point can be that checking your credit report or score can be seen as a part of “background check” . While there are genuine reasons why some innocent guy had a bad CIBIL report, a person having a bad CIBIL report can be seen as an irresponsible person and not capable of taking care of things. Just like no company likes to hire someone who has a criminal record, in future even having an extremely bad credit report can be seen in that way.

2. Bad credit record might indicate bad intentions as general

A person having a bad credit report might not be seen as an honest, credible person to work with and he/she might be seen as a potential threat to the work environment. While this is a big debatable topic – look it from employers point of view, they see things in a very defined manner, if the company policy tomorrow says that we will not hire someone with any person whose credit report has a WRITTEN OFF status on a loan, or has a score below 650 , then even those who are innocent and have got a messed up report will feel ask if its unfair, but companies go as per their framework and rules defined, not case to case basis.

3. High debt trap might lead to bad performance

If you have a huge debt on your head, it’s really tough to give your best at work. This is exactly how employers can see it, even though you disagree with it. It has been known that financial issues have a big impact on professional life, you might not concentrate fully if you are in a financial mess and paying off your debt is consistently on your priority list each and every moment.

Bad credit report leads to job rejection in interviews

Is the CIBIL report being checked by all employers and sectors?

As of now, looking at credit reports while the interview is a very new trend seen in India. It’s not widespread, but have started happening. So you can safely assume that it will be a regular process within some months or years. As of now, CIBIL Report is checked at only senior-level interviews especially in Financial and IT sector, but soon this will be happening across sectors and all levels. Employers can not directly access a candidate credit report because RBI guidelines allow credit bureaus to share it only with banks and financial institutions who are clients of CIBIL, hence Employers ask the candidate themselves to present their report when they come for an interview.

Note that credit reports are just one of the parameters being checked by the employers, it’s not the only basis for job rejection. Apart from the credit report, other main and important parameters like job qualification, experience and salary expectations will also matter while hiring, a credit report is just a part of the whole process.

Who else can use Credit Report and Score in coming future?

In an email reply to me, Harshala Chandorkar – Senior Vice President – Consumer Relations of CIBIL shared with me that credit reports can enter our lives in a big way in the future. In future landlords may demand a credit report before renting out an apartment and even telecom providers can see your credit report to assign the limits for your usage, but this can happen in the future, not very soon. Here is what she said in an email reply to me

In more developed economies, an individual’s credit information report and credit score is critical reputational collateral and is being used for multiple purposes by various institutions. Employers review it before recruiting a new employee; landlords require it before renting out an accommodation and of course telecom providers check an applicant’s credit history for assigning limits.

We may see similar evolution in India when a person’s credit report and credit score will be imperative for a lot many things in addition to availing institutionalized credit facilities. Therefore it is very critical for students to maintain a good credit history and pay back the loan dues on time.

Share this information with your friends (you can share it by clicking on the “Share” button on the left side) and let them know about it, they will thank you. Also, let us know – What do you think about this about job rejection due to the CIBIL report? Do you feel it’s going to help us all? Do you think it’s fair to check credit reports by employers in job interviews?

133 replies on this article “Shocking ! – Job Rejection due to Bad CIBIL Report”

  1. raghu says:

    can i share the cibil report downloaded from sbi to bank representative. Is there any problem

    1. Jagoinvestor says:

      YEs you can .. there is no problem

  2. Kamlesh Malvankar says:

    I had left my job in Feb 2020 due to some reason and thought of joining new job in March 2020 but unfortunately due to COVID i could not an job for last 1and half yr. I was not able to pay my loans dues from April 2021 as I have spend all my saving paying my EMI. I had never defaulted for last 20yrs of my career before leaving my job. But due to COVID i was not able to find the job at right time and now when I have got the job my cibil is creating problem to join the bank. There should be some exceptions in my case as my intention was not to default by my situation is such that I don’t have any funds now to pay the due amount.

    1. Jagoinvestor says:

      Hi Kamlesh

      The best thing you can do is explain your situation in bank, because CIBIL updates are robotic and dont consider the reasoning as given by you. I understand that your case is genuine, but you need to talk to bank manually about this.


  3. Sontyana Balaji santosh says:


    can any one please send me the solution for this..

    its urgency..

    i have done MBA, got job in one of the private company which is located in Bangalore, after three months i left the job without prior information to the authority because of too much of work pressure..

    now i’m going to do another job, as a fresher

    here my question is, i got terminated from my previous company, is that will be effect to my current background verification ????through pan card or Adhaar card… because i have submitted my all id proofs in my previous company…kindly reply me anyone with proper solution because

    1. No , till now there is no system like this.

      1. Rabiya says:

        What abt frm the bank details , do thy get to knw frm aur bank details .??

  4. Tofique says:


    Can person X check the cibil score of person Y, without the knowledge of person Y?.. Can any third party be involved in such dubious act to get the check done?..

    1. NO, they cant , unless one has access to all critical information which is asked for authentication.

      HOwever note that banks can find out anyones CIBIL score/report

  5. Gunit says:

    Hello cibil score is 597 and now i have taken homeloan from indiabulls will this increase my cibil score as I believe taking a home loan increases the cibil score.

    1. Jagoinvestor Admin says:

      Hi Gunit

      No , Taking loan does not improve CIBIL Score . In fact it has an adverse effect. However , timely repayment of loan has positive impact on CIBIL Score.

      1. Gunit says:

        In cibil my credit card is showing as written off and score is 597.Will timely repayment of my home loan will increase the cibil score.

        1. Yes, it will improve the score!

  6. manikanta says:

    HI Sir,

    Which Companies and counties are giving the priority to CIBIL Report. Because i have bad cibil report if i selected the abroad the jobs especially pharma sector is it effect to me?

  7. Jai says:

    Hello sir, I have been shortlisted for HSBC Bank Chennai. I have a credit score of 736 as of today. In past I have 3 delay payments. No settlements/ write-offs… Will it have adverse impact on my credit check

    1. It might have..

      Many banks are now checking CIBIL scores before giving the jobs !

  8. Rishu says:

    Sir I have cibil problem is it prblm for my passport verification and visa sanction pls gv me suggestion

    1. No, its not an issue for passport !

  9. icarus says:

    hello sir,

    i strongly suspect my brother in law who is working in a coperative bank has accessed my cibil report without authorisation or my consent. i am account holder in his bank though i have not applplied for any loan, he is using my bad cibil score to defame me in society.
    can i complaint against him to banking ombudsman or such

    1. Yes, you can complain this to banking ombudsman ..

  10. Atul says:

    hi sir, I got a job in dubai and my cibil is not upto mark I believe. I got a job in a real estate company. Will it be effect on my visa

    1. No , it will not affect your visa

  11. ananta says:

    hi, I have loan and now I want to settle it under OTS scheme, if i take NOC after settlement .ca I get a job in private bank. my cibil score is more 750.

    1. Hi ananta

      Thanks for asking your question. However, I dont think I am eligible to answer your query as its either out of scope of my knowledge or its not related to money matter directly


  12. Amith says:

    Hi Manish,

    I have short listed in HDFC Bank and my CIBIL score is 570. Will it affect to my offer?

    1. It might.. there are various cases where job was rejected due to low CIBIL score !

  13. jaspreet says:

    Hello Sir,

    I have Joining with Kotak bank, I have checked my cibil score 614, and one settlement with SCB

    can bank reject my offer letter


    1. If they have already given you appointment letter then I dont think there is any issue !

  14. Suriya says:

    Hi sir,

    I have cleared ibps clerical exam.. I am unemployed still now.. I have unpaid education loan will it impact my joining.

    Please answer

    1. I guess it should not !

      1. Tarun says:

        Sir it is definitely affecting as ibps and SBI mentioned in there advertisement to check cibil report before applying. I have facing the same problem. Though I pay my loan now cibil report still showing WRITTEN OFF. What should I do pls tell.

        1. First check with bank why they have mentioned it as WRITTEN OFF when you have already fully paid it ?

    2. Suriya says:

      Thanks manish. Hoping for the best

  15. anu says:

    Hello sir
    I have taken gold loan frm one company.
    But tgere r too many dues..
    Right now one selected me for manager position..but due to my low sibil score. Dnt knw wat to if i close all the loans nd if i submit all d documents and closing letters to the they can hire me or not?

    1. That will depend on the bank !

      1. anu says:

        It is kotak mahindra u have any idea?

  16. arun says:

    hi, this is arun

    i have the cbill score of 640, how i get a job in bank sectors, whether hdfc home loans department wiil see the cbill report, how i get a good cbill score and to improve,

  17. vinodkumar says:

    hi chauhan ji my name is vinod kumar. i got selected in one bank and i submitted my documents and iam waiting for offer letter i did not received. i enquired them and said iam rejected bcoz of low cibil. actually i ahve taken two consumer loans and i paid emis in intime and i checked my cibil and its 000. my doubt is will i have chance to get reject just bcoz of this cibil. please help me to inform me eagerly waiting for ur reply

    1. You need to fix the CIBIL first. because a lot of companies are now checking CIBIL before granting the jobs.

  18. Gayathri says:

    HI…I have a credit card debt and i have my name in cibil.I got shortlisted for one pf the private banks.Will they reject me because of my credit card debt?

    1. May be .. you never know

      1. Anil says:

        Hi Manish,

        I am working with insurance Company since 6 years and now company . I have a credit card and i have my name in cibil but i was clear all my due payment.I got shortlisted for kotak banks. For BSM post Will they still not send me any Offer letter? My cibil score is low and have all No due documents from banks.

        Do you think this background check will impact my job.

        Please advise.

        1. Yes it can

          A lot of people job applicaations gets impacted. See teh other comemnts

  19. RAhul says:

    my score is 789. hat type of score it is, fair good very good. pls tell me.

  20. Kumar says:


    I have CIBIL problem due Credit cards late payments.Now i got opportunity in on of US Investments company where my job is into IT related not core finance or something.So my question is will they check my CIBIL score before or after giving offer letter.

    1. It might happen these days

  21. Jonnie says:

    Do banks in Dubai, Australia and Singapore check indian credit history of the candidate for Jobs?

    1. Hi Jonnie

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  22. pinky says:

    hello sir i have clear all the round in hdb finance but after sometime he call me and said that you are rejected because of cibil issue after then i checkout cibil and my score is 750.Is it possible can i join the banking sector in further future.

    1. Yes, but make sure you correct your cibil issues first

    1. Arjun says:

      Dont worry guys there is a rules company cannot check individual CIBEL score, just chill, if they do so ask them a source how did they get your score & drag them to RBI chill & ignore my all previous comments kool and guys ny offnce noproblem

  23. Arjun says:

    I think if any one not getting rejected based on your credit score CIBEL pls drag the CIBEL body to high court & even sue company. I think there should do some rules for CIBEL not to share you score with company it should be ment only for Banking sector, now it’z seems they have entered into money making business it’z a serious problem to individual people should throw CIBEL out or they should stick to only banking sector that it… JAI

    1. RAhul says:

      Hi arjun.. i can understand. I was in cochin working for Equifax process. Equifax , transunion and experian are three credit bureau agencies in US. I have seen people literary cry on calls talking to me about their scores. These company suck blood of Americans. Now they have come to India with tie up of CIBIL to drink our blood. Arjun.. If scoring system comes deep in effect, we are done.

  24. Arjun says:

    I think if any one not getting rejected based on your credit score CIBEL pls drag the CIBEL body to high court & even fuck*** company. I think there should do some rules for CIBEL not to share you score with company it should be ment only for Banking sector, now it’z seems they have entered into money making business it’z a serious threat to individual people should abond CIBEL n kick out or they should stick to only banking sector that it… Jai Hind

  25. Shashikant says:

    Are You kidding me? My gf don’t have rights to check out my credit card bills then y d hell i will present it to the companies……..Its a personal matter. If they want to check out the credit card records then better check Politician’s who are having a job of running the country in a systematic way but rather they will have lakhs of credit value and repay it with public money………:-/
    What it if someone has loan or some unpaid bills and has lost his/her job due to some reason and looking for another job so that he/she can earn something and can clear all dues. Having a pending loan or bills does not necessarily mean that a person is not trust worthy. In pas it has happened to many people who lost their job in recession with lots of dues in their name.
    The primary motive for getting employed or switching jobs is to get decent enough salary to clear the dues if you have one. This piece of news looks like a money making campaign for CIBIL where gullible individuals will order their credit reports after reading this. I fail to understand the relation between credit history and employment unless you are going to borrow from your company. Next time in interview they can also ask for health report (of-course sex life) to know how much stamina left in the candidate to perform his duty well.
    Please desist from wasting time on such illogical news. Hell If any company rejects me just because of bad CIBIL score (without any criminal offense) I would happy reject the fucking job offer before the fucking company rejects me. Fucking greedy bastards…! Requesting everyone not to apply to such companies. Tell their HR “f?ck you off”. Boycott such compaies.

    1. Hi Shashikant

      aHi Shashikant

      Thanks for your sharing your valuable comment on this topic. Please keep sharing your views in future also


    2. Arjun says:

      Good One.. first of all the person who gave authority to this CIBEL for job background should be hanged till death, second only bank should use this data, third where is my human right freedom?

  26. Rick says:


    This is a shocking news . I would just like to know does it ap[ply for anyone aspiring for Public Sector jobs as well? Like public sector banks and all? Can they still reject candidature even though one clears the written and interview? Please let know

    1. Hi Rick

      I just know that banks are doing this for some good level jobs

  27. Nivas says:

    Hi Manish,

    I am working with IT Company since 6 years and now company is doing background check now. I have issues with my credit cards 7 years back and have setttled all the cards. My cibil score is low and have all No due documents from banks.

    Do you think this background check will impact my job. I am sure they will pull my Cibil report.

    Please advise.

    1. Hmm .. I dont think that it should be checked for background check’s for existing employees, but I cant say must also . At some levels , for fresh hires, it gets checked, so it should not be very surprising if they actually check your CIBIL .

      Let us know what happens in your case ?


  28. syed says:

    Hi Manish,

    I had a creditcard in 2004-05 used it once and then cancelled. Now I have Demat account and other savings account. I do not have any loans. So what will be my cibil score? If I dont get any credit report and if my new employer asks for a credit report what should i do?

    Thanks in advance.

    1. First check your cibil , if its not there, then you can just tell that you do not have any credit report right now .

      1. syed says:

        Thanks Manish.

      2. Saurabh says:

        Dear Manish,
        Same problem as Sandesh I had with Indus Ind Bank Kolkata recently. They told me that my score is very low so they are not considering me. However, I submitted them my CIBIL Report which clearly says 763. There was an issue with a credit card which I cleared 1 year back. I submitted them the NOC too. The HR here told me that she has forwarded the details to her central office. Now I am waiting to hear from them. However, going by the posts here in the link I am very much scared.

        1. Truely speaking , Score does not matter much , but main thing is the REPORT Status ! . What is inside and how bank wants to look at it . So decision by bank is final

  29. Vishnu says:

    I have got selected in HDFC Bank and offer was rejected as they have done the credit check.. where my 2 outstanding credit cards was caught .now i have atteneded indiainfoline gold. will they have the same policy as HDFC

    1. Tejas says:

      Vishnu I had the same problem with Ratnakar Bank

  30. Sandesh says:

    My Interview was successful and I have cleared all rounds for IndusInd bank. My selection was rejected due to my score was 630. Now as I have pulled up my score it is showing now 762…. Now, will I be eligible for Joining any of banks ?

    Or what should be minimum score to get selected in any banking sector ?

    1. It will totally depend on Banks that on which score .. they will hire someone.

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  32. Sanghmitra says:

    Is there an opening in JI for research ? I have a clean score 🙂

    1. What kind of research are you interested in 🙂

      1. Sanghmitra says:

        everything related to personal finance ..Though amateur at trading and stock-market..It really feel awesome to learn everyday new in the field and educate others.

        1. Good to hear that ! .. keep reading !

  33. Ritesh says:

    Hi Manish,

    My Cibil score is 653, I don’t know why this is very less, Is this ok score. Will i get the loans in future?

    1. 653 is not a good score, you need atleast 800+ these days to successfully get loans .

      1. padmanabhan says:

        hi score is 796. Is the score good for employment??

        1. One cant comment on it like this . Its dependent on companies

  34. Swetank Saroj says:

    Hi Manish,

    Few days back I receive an e-mail from, stating that one can avail their professional services for getting their score rectified.

    This website looks like a genuine one, which is going to help authentic person. But I think someone got this business idea either due to the nexus between bank/NBFC and CIBIL or they have contacts at CIBIL.

    My only concern is, why one need to pay for none of their faults; here the person first faces the problem then pay a 3rd party to get it rectified.

    We definitely need a rule that whoever enters or gives wrong data should be severely penalized, the way we customer would pay with a bad rating.


    1. They will just give you advice. They will study things in detail and give you a detailed roadmap on what you should do , You can get much of the information here itself. There is no magic by which anyone can improve your score. The fundamentals are same . You should first check with them what they will do .

  35. Abhinav Gulechha says:

    Hi Manish

    Thanks for your revert. Actually I had taken car loan from SBI and there was some confusion in start date of EMI. So where I was paying the EMIs from day 1, the first EMI was still shown as unpaid in bank system and there was no intimation from SBI to this effect. Apparently, later SBI must have reported it as unpaid to CIBIL. Later when I had to take a personal loan from a different bank, my score was shown as 700(which is very low). On enquiry, I was told that the quantam of the default also matters. The lower and insignificant it is, higher is its impact on the score. So, the impact would be far higher for a default of Rs. 500 for a person earning Rs. 5 lac annual salary, in comparison to a default of Rs. 10000 to a person earning say Rs. 2 lac per annum. This is something which I was told, am not sure whether its true.

    1. Who told you that small defaults have higher weightages , I really doubt that ! .. I never heard about this.

      1. Dr.Suneet Jindal says:

        But if there is something like small defaults have higher weightage,it really seems logical.

  36. That is shocking news… Thanks for sharing the same… Looks like getting a job will be more difficult than getting a loan….

    But is CIBIL report is being updated properly as in USA… I have heard lots of discrepancies in the report in the past which can lead to problem for job seeking candidates…

    1. Yes its updated by all banks properly , the descrepencies which you are talking about might happen if bank does not update the data properly !

  37. Abhinav Gulechha says:

    Dear Manish

    Thanks a lot for highlighting these new developments through your blog. When I got my CIBIL report earlier, I was really surprised to see low score for no error on my part, so it makes all the more sense to get the discrepancies rectified.

    1. Why was your score low ?

  38. Abeer Bagul says:

    CIBIL rating is good only in countries where there is a strong redressal system for an individual. In India, this is not a level playing field. How easy it is for a bank to report a black mark, and how difficult it is for the individual to get it removed. Does bank have to submit as much proof and evidence?

    In US, a wronged individual can sue for and get punitive damages, there are class action suits. How many consumer courts in India have awarded punitive damages?

    CIBIL is an excellent system, but we need an equally strong grievance redressal system.

    1. Yes , agree that strong dispute resolution systems has to be developed. Only time will bring it

  39. Ram Mohan says:

    This is absolutely idiotic and non-transparent where the employee is at the mercy of the employer again.

    How many employers are transparent about their finances and whether their credit history is good or not. Same goes for landlords, how does anybody know whether their landlord pays taxes properly etc?

    All-in-all a step backward for India just blindly following Western/US rules

    1. Thanks for sharing your views on this issues !

  40. Varghese says:

    Dear Manish,

    I am not using any credit card or not taken any housing loan.
    Can I get a CIBIL report

    1. In that case you dont have a credit report at all ..

  41. Arunima says:

    What are the factors considered for your credit score?

  42. Amrut says:


    I agree with Nirmal and I don’t agree with about your reference in USA.
    In US credit check takes place but you will still get a job with lower credit ratings.
    This credit check is to determine only to check if you have done any criminal activities. As per your post, any person with lower credit ratings will not get any job / loan / funds / rented place / telephone. Thats like the end in his life. In other countries, you will still get loan / rented place / telephone but at higher cost. No one can deny you any consumer service just because your credit ratings are low.

    1. Amrut

      I had written in article that its a standard practice to ask for credit report while job interviews .. there are so many proofs of that . The job might not be dependent on that, but for the same reason you gave , its asked to check the candidate credentials .

    2. Nirmal says:

      Hi Manish
      Thanks for the response. Before I move on to comment further I’d like to commend the transparency you maintain in this portal and for being honest in your responses. Sorry if that sounds patronising but I have come across a number of portals where the authors of blogs only selectively publish readers’ responses, and I am glad you aren’t of that kind.

      I guess Amrut clarified the position in the US, and also making a crucial point about the real reasons behind credit checks out there. I should point out that the UK is no different in this aspect.

      It wont be long before Indian companies realise that this whole CIBIL rating based employment drama will quite often mean they will lose on being able to recruit good talent, so they will change. Who said supremely talented people don’t live on debt afterall 🙂


      1. Nirmal

        Good to see we are at agreeing on common point . I agree some good candidates will be lost by companies because of this CIBIL thing, as this is too new trend in india, making any strong comments will be of now use. We need to wait and watch

        1. Tejas says:

          I agree to you guys Manish and Nirmal….
          I got a job offer from Ratnakar bank for the post of Relationship Manager.But the offer was rejected bcos of my CIBIL issues 6 years back.
          I came to know from the consultant that the bank appointed 2 guys at much higher salary and less experience.So surely a good candidate like me was lost by the bank and I lost a good offer….
          I wish to ask am I a criminal.terrorist,murderer ,rapist???that the bank has to reject my job offer due to bad CIBIL score????
          Why don’t they see CIBIL score of politicians who have done scams and frauds to the highest level.In Adarsh housing scam even peons had got loans in crores….Where is the CIBIL gone now???

          1. Thanks for sharing that Tejas, I am sure very soon this CIBIL thing has to go ! or IMPROVE

            Sorry to hear that you lost your job due to this !


  43. Mr.Babu says:

    Hi Manish,

    I don’t see any Shocking! issue on the subject(felt bit Exaggerated here) as we all seen companies doing the CIBIL Check before they employ any one, its been a regular process with banks and NBFC’s but today gradually everyone trying to update their employing process with the best in given point of time.

    As you rightly mention, time in INDIA is emerging as Survival of Fittest/Cleanest with its own share of modulations.

    Sr.Analyst & Strategist

    1. Thanks for your comment ..

  44. Nirmal says:

    Hey Manish
    I appreciate you are only trying to educate the readers but can you please get your facts right? Your statement “Note that its a standard practice internationally to check credit score before employement” is actually untrue. I have been living and employed in London and Western Europe for the last 10 years including atleast 4 different very large banks and have never been asked to undergo a credit check with the exception of one occasion which was when I was offered work with an investment bank. I work at quite senior level (CTO equivalent), so it doesn’t depend on the job-level.

    I welcome your suggestions in general, and if what you have described is the reality on the ground there, then I am to believe that the current state is due to lack of maturity in India in terms of understanding credit ratings and the social impact that could have. The one-size fits all approach that both the RBI and the companies of the kind you mention above seem to adopt is totally ridiculous and one can only hope and pray for swift reform. It will be a while before companies realise the current approach is impractical and unreasonable, and until then the candidates would have to bear the brunt of an incompetent regulatory body like the RBI. They need to understand that the consumer-led economy, debt is the norm! I know this is against beliefs that we Indians are carrying for several centuries now, but you can’t have both a populus with lots of savings and also a booming economy. Please don’t think I am suggesting everyone to borrow but how else do you think an average man or woman can fund his or her desires and his or her family’s wishes.

    I do not understand your reference to the Investment Advisers regulation — see this link
    This regulation will be of absolutely no use to the average person, so I don’t undertstand the reason for your optimism.

    What needs to disappear is the fear that financial institutions can ruin an invidual’s current and future life just because they have lent some money in some form or the other. Why do you think there are suicides every so often in India when they face major financial losses? It’s either the fear of the shame that will follow or simply down to some very basic things like being unable to feed their families. Banks (the majority atleast), insurance companies, Investment banks, hedge-fund managers, credit card companies — they are all in existence not because you and I need their services but because by offering their services they get to make something very lucrative called ‘PROFIT’. So why should a common man be suffer because someone else’s greed? This is the very basis that has spear-headed the regulation in a number of European Nations and in the USA, which is why people in these nations don’t fear the ever-hungry financial institutions. Ofcourse we should all be careful in the way we spend, understand our limits and limitations, aspire to earn more, and hope for some savings at some point in our life time. Mahatmi Gandhi famously said “If you buy something you don’t need, you will need things you can’t buy”. The great man was so very right!

    1. Nirmal

      Thanks for pointing that out and what you experienced, also thanks for taking time to put a long reply . Here are my points

      1. I accept I went little overboard to declare that this is a standard practice in every country , While my intention was mainly to point to US and some other countries , where credit report is widely used, It might happen that you never experienced it , but the overall point was that its used in different area;s of life to judge a person credibility

      2. Where did I refer to the advisor regulation in the article ? I had mentioned about it in a reply to comment to one person but it was for a general view among changes happening in india , not for this particular concept.

      3. Also I never mentioned and its not a fact also that just by taking a loan a person becomes bad , i agree when you say that growth will come by taking credit. The only point is if someone is unable to handle the credit and misuses it , only then the credit report creates a problem for him . rest I am in support with you that given the situation of any developing country , the growth can only happen with taking credit .

      4. This is a highly new trend in India, there are just few cases, but the point is it has happened and acknowledged by CIBIL itself . So we can expect it to happen at lot of positions in coming years. Anyways this post was for purpose of letting people know whats happening around and the new trends .

      Let me know if I was not able to catch few things which you want me to , are we on same page now ?

  45. Sushil Kumar says:

    Nicely written.. this is very proven fact that CIBIL rating is now used by companies especially in financial domain before hiring new employees… earlier it is used extensively for loan, credit card, account opening etc process where bank have upper hand before enrolling good creamy clients…. visit to check your report.. but yes its not free 🙂

  46. Swetank Saroj says:

    Hi Manish,

    This is a shocking news.

    Below is a line from your article where I think you have missed “not”.

    “So if your credit report is bad because you have **NOT** paid your loans on time or if you settled your loans in past, you might get rejected in your next job interview provided your prospective employers looks at your cibil report/score. ”

    Now the other point, as you mentioned a cruel YES for Sachin’s question, I too love that every thing gets connected to our CIBIL score but not only in institutions favor. I want a hefty fine on these institutions along with mental damage for a wrong report of information quote on a customer finances.

    It cannot be just a one way road, even we need to have our share of pie.

    What you say?


    1. Fixed the “Not” part .

      Obviously , the companies and banks cant have the whole pie . I am with you on that . Now 3 points

      1. Most of the public on this blog and in general everyone , does not understand that if things happen under a legal framework and is under law, you cant do much , other than labeling the company as Chor . Let me give you an example . A person does not pay his bill on time , company levies a penalty , customer argues it and does not pay for 3 months . Interest and penalty is applied as per the guidelines. The amount grows, now the guy is more determined not to pay , 2 yrs pass by , the amount has become so big that the guy is surely not going to pay .now his loans are getting rejected and for him CIBIL is the dalal of Banks and banks are anyways culprit , where are banks were not at fault , they did everything as per terms and conditions (not arguing about the terms and conditions part) . CIBIL is anyways a collaborator of information , and nothing else . Now if this guy expects justice , what else can you tell him ?

      2. People are not ready to pursue legal battles, I am not arguing about the system at this moment, yes system is bad and not the best, hence it becomes tough for a common man to keep fighting for justice, but there are cases where the customer is right and if he streches his fight , he can win and infact get a lot of compensation in terms of damages , people who cry about the lazy systems and babu-ness have never got too serious about the consumer courts and the procedures, it works , but is slow and takes times, one needs to have patience for that.

      3. Things are changing, we will have our share of pie .. see what SEBI did with investment advisors just few days back – THE INVESTMENT ADVISORS REGULATION IS COMING AND THEY HAVE TO HAVE MINIMUM QUALIFICATION AND REGISTERED with SEBI ! .. soon it will happen , so you cant expect to change things soon , but with slow pace its happening .

      What do you think ! .. you got me write so much on a holiday – not justified 🙂

      1. Swetank Saroj says:


        Thanks for your detailed reply.

        I agree with your first point and especially the legal framework. And the example you took is a nice one; but here the consumer is at fault, he or she can just ask for waiver as a goodwill gesture but the decision is always the company and being at fault we are suppose to pay on time. Once I argued to ICICI credit card regarding this. They have charged a fine on my card because of no payment of MAD whereas because of a reversal of transaction amount TAD was clear before the last day Finally I won; so my point is we as a consumer need to have at a solid ground before cribbing or crying fault.

        I agree we are not ready to take the legal action and you have already mentioned the points. Apart from the system laziness and our own laziness the problem is also of not having sufficient time, because most of us work with private company and everyone know how tough is getting frequent leaves.

        Totally agree with your third point and things are improving but only after a lot of damage already occurred. Today I read that DGCA is going to increase the compensation for denying a seat after 3 years; why because fares have increased and the compensation is now insufficient ( as pointed out by the consumer court). Dont they understand thees things on their own, if not they do not deserve to be at their designation. I may be harsh but many of these thing are simple common sense.


        1. Yes agree with your points also , but these days filing complaints , sending legal notices have become very easy with technology and new start ups coming in . Try and

  47. Amrut says:


    I think its too early in India to check for CIBIL reports. In other countries where there are strict checks on credit report, process to report illegal transactions / stolen credit cards / illegal cards is very easy. All this process is customer centric than the institution centric. Even after all this, it gets noted on your credit report only after 3-4 mail reminders. We are still long way to go to achieve this scenario.

    1. But Amrut

      This has started !

  48. Sachin says:

    Hi Manish,
    Are we heading towards credit check before “everything” just like developed economies ?
    if thats true than next in line should be mobile phone post paid contract, rental agreement of all sorts.

    1. Sachin

      The cruel answer is YES , thats happening and will happen , but it will take time and things will happen gradually .. The telecom thing in CIBIL should soon happen , Vodafone and other companies are already in talks and contracts have been signed for data sharing . We are moving into the “be aware what you are doing” era and i think its for good , but it has its own share of bad experiences which are bound to happen given our indian public misdeeds and “chalta hai” attitude !


  49. Vinod says:

    This was again a “You first hear it from Manish on Jago investor” kind of news.

    Though at first it looks shocking, it makes sense at the end after reading the complete article. And if the practice really spreads, hopefully its good for honest people.
    However, I am yet to see the ‘honest’ people really getting any benefit of having a good cibil score. Not many banks offer you any rebate on interest rates even if you have a good credit track record. So it looks like the banks use it only to their benefit while assessing a person with not so good credit score, and not the same yardstick is used for people with good score.

    1. Yes Vinod , right now honest people are not getting any benefit , but it will happen , may be you will not be able to take the benefit , but your kids will 🙂

  50. Suhas says:

    Hi Manish,

    That was news to me….I had not heard about it previously in India.
    I knew about people using CBIL for Marriage other then credit…. 🙂
    I will be more cautious with my credit and payment now ……Right now I have good CBIL score… 🙂

    1. Better keep a check on it , credit report/score is going to be a big thing in india in future. the trend has just started !

  51. Gowri says:

    The other point about “high debt trap” that is important to an employer is that a person with high debt is going to be very focused on getting more salary either with the same company or become high attrition risk.

    1. Yes, thats the main reason actually to avoid a person with high debt !

  52. Jassi says:

    Very nicely written Manish.
    I never knew bad CIBIL score can have such a big impact on job etc

    Since my rating is good, we are getting a credit card for Priya (my wife) to ensure that her score also builds up. Will getting a credit card and using/paying on time be good enough to build a good score in some months?
    Currently, all loans are on my name only and since I have never defaulted, my score is good – 814.


    1. Yes already told you that using it for few months, will generate some score, but cant say that she will just get a great score in next 3-5 months . Understand that credit score is calcualted using an algorithm using last 24 months of data , so less history means less data and cant predict the best score which represents her capability . so untill she completes 1 yr or atleast 8-9 months , dont expect amazing score .


      1. Arindam Chauudhuri says:

        Hi Manish,

        Thanks for the info on CIBIL Credit Score.Is there any way that we can check our own credit score? Any online/offline source from which we can gather the relevant information.In that case we will be able to rectify the same beforehand so that nothing unforseen happens in the future.

  53. Chirag says:

    Wooo that was a real shocking thing..
    Manish I completely agree with the point that “High debt trap might lead to bad performance” a person might just work for money and not for his passion or for the benefit of the employer.
    Nice one..

    1. Sagar says:

      There is no logic behind this.. if cibil score is less how can the employer reject a job?…Cibil is not an goverment organisation neither it comes under RBI…and if a employee has credits it wont affect his performance, infact he will work more harder with good performance so that he can get move incentives , promotions etc and clear off his credits…cibil score is not the eligibility 2 get a job… neither it should be encouraged….

      1. Sagar

        Did you read the article ? Did you see the rational behind it ?

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