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.
22nd Oct 16 SBI asks customers to use its own ATMs after the cyber attack hits 3.2 million debit cards
SBI advised its customers to use its own ATM networks for safety of transactions. The Bank also promised to replace 6 lakh debit cards which were blocked by the bank as a preventive measure within ten days following a cyber security breach in the country banking system. The other major banks hit by the cyber fraud are Axis Bank, HDFC and ICICI Bank.
18th Oct 16 Axis Bank cuts it benchmark MCLR by 5 base point rates
Axis Bank has cut it benchmark MCLR base rate by 5 bps. The bank has reduced its rates across tenures effectively reducing the overnight rates to 8.80 per cent and three year rate to 9.35 percent. The bank announced the reduction after its peers such as ICICI, Kotak Mahindra and Indian Bank cut their lending rates following the RBI monetary policy review on October 4th, 2016.
18th Oct 16 Citibank gives special Diwali offers on personal loans
Citibank personal loan offers reduction in rates to 11.49 per cent for digital channels and online applications made at MyLoanCare. Bank offers 0.50 per cent discount on processing fee and an Amazon Gift Voucher of Rs. 250 for loans disbursed till 3rd November, 2016. Also, get a Flipkart Gift Voucher upto Rs. 2500 on applying through MyLoanCare.
15th Oct 16 ICICI Bank tests blockchain transactions
ICICI Bank has done successful execution of its first two transactions using blockchain technology. Now other private sector banks are gearing up for the technology. Axis Bank and Kotak Mahindra Bank are conducting pilot transactions in trade settlements and cross border remittances, while HDFC is still assessing the opportunity.
14th Oct 16 PNB Housing Finance cuts home loan rates by 10 basis points
PNB Housing has reduced its home loan rates by 10 bps. The floating home loan rates have been reduced to 9.45 per cent from 9.55 per cent while fixed rates decreased to 9.4 from 9.5 per cent. PNBHFL has also cut its loan against property rates by 25 bps to 11 per cent from 11.25 per cent. This rate cut will be effective from 14th October, 2016.