New Delhi, Dec. 10 -- The Reserve Bank of India (RBI) has clarified that it does not prescribe a minimum credit score for sanctioning loans by banks and other regulated entities.

Minister of State for Finance, Pankaj Chaudhary, shared this information in a written reply to the Rajya Sabha.

CIRs as One of Several Lending Inputs

RBI guidelines require credit institutions, including banks and Non-Banking Financial Companies (NBFCs), to obtain Credit Information Reports (CIRs) from credit information companies as part of their loan appraisal process.

However, the CIR is intended to be one of multiple factors considered before granting credit. The RBI requires that first-time borrowers cannot be refused loans just because they lack a credi...