A CIBIL score -1 (NH) on a CIBIL credit report indicates that there is No History (NH) or credit track record available for the borrower. You can have CIBIL Score -1, even if there is no credit activity for 2 years, that is your credit repayment history is older than 24 months. This situation might even occur if you don’t have direct credit exposure on your name (for instance you are just using add on credit cards).
While, fundamentally this is not a bad situation to be in, it deters banks and other lenders to lend to the customer for want of an adequate credit checks/track record. Some banks may reject the application, while a few banks or NBFCs might still decide to lend based on a credit appraisal on other factors including the salary/income proofs, educational background, employer etc. of the prospective borrower.
CIBIL 0, Zero CIBIL Score
A score of 0 (NA) on a CIBIL credit report means Credit History Not Available (NA). This score indicates that the borrower’s available credit track record is for a period of less than 6 months. In this case banks will evaluate Credit Transunion 2.0.
Many banks have migrated to the new credit score versions, thus improving their ability to take a decision to lend for borrowers with less than 6 months of credit history. However, those on the older credit score versions might still receive a report which gives a score of 0 or -1 for new borrowers.
CIBIL Transunion 2.0
CIBIL has launched a new version of their credit reports knows as CIBIL Transunion 2.0 which follows a different approach for evaluating the past history of the borrower with less than 6 months of credit history. CIBIL 2.0 provides a score or risk index for new borrowers within a range of 1-5, where 1-2 represents the highest risk of default, 3 represents medium risk and 4-5 represents the least risk of default
The score is dependent on various parameters such as loan type (secured or unsecured), past credit seeking activities (like number of loan enquiries), 3 months overdue in any month for the past loan period, demographics (like age and location) etc.
Other two leading credit score agencies of India, Experian and Equifax have also followed suit by offering credit scores for new borrowers. Experian measures the scores of such customers on a grading scale of one to six, where one means highest risk of default, and six means lowest risk of default. Equifax gives a score in the range of 300-900, which is similar to the scores which a potential borrower with adequate credit history would get.
09th Dec 16 Kotak Mahindra Bank to launch Kona Kona Cashfree, a nationwide digital banking initiative
Kotak Mahindra Bank has announced the launch of a pan India digital banking initiative with Kona Kona Cashfree. The idea is to promote cash free transactions by giving incentives, educating and making people aware of various digital payment options available. The initiative is taken to complement the vision of Digital India. The bank has already launched a range of digital banking apps such as Kaypay, an UPI based application and Kotak Bharat, first of its kind multi lingual app in India that does not require internet connectivity.
09th Dec 16 PNB organizes financial literacy cum Digital Banking camp
Punjab National Bank organised an awareness camp on Digital Banking. The camp was held at the branch of village Kotli Jabowal, Arnia on Indo-Pak border. The focus of the camp was to spread awareness about the benefits of opening a saving account and using digital banking applications.
09th Dec 16 MSME ministry to consider increasing cash withdrawal limit for micro units
Ministry for Micro, small and Medium Enterprises (MSME) is planning to increase the cash withdrawal limit for MSMEs to Rs. 2 lacs per week. MSMEs in India are significantly dependent on cash transactions and hence any efforts to move them towards digitisation have to be a gradual process. The main objective of government is to boost the growth of MSMEs in digitisation but without any irregularities in cash availability.
08th Dec 16 Canara Bank cuts MCLR by 15 basis points
Canara Bank has reduced its overnight and three months marginal cost of lending rate to 8.90 and 9.05 percent from 9.05 and 9.20 percent earlier. The bank has also reduced its six months and one year lending rates by 15 basis points to 9.10 and 9.15 percent from 9.25 and 9.30 percent respectively. Revised rates are effective from 7th December, 2016.
08th Dec 16 RBI stunned market with unchanged repo rate
Reserve Bank of India announced its fifth biannual monetary policy on 7th December, 2016. In the latest policy, RBI has left the repo rate unchanged that stands at 6.25 per cent. However, banks were given a liquidity boost with RBI withdrawing the 100 percent incremental cash reserve ratio (CRR) requirement which was imposed in late November post demonetisation.
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