Lok Sabha Question No. 1899 (UNSTARRED), answered on 2018-12-21
Subject: Denial of Loans on the basis of CIBIL
Ministry: FINANCE
Asked by: MURALI MOHAN MAGANTI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION NO. 1899

TO BE ANSWERED ON THE 21 st  December, 2018 / AGRAHAYANA 30, 1940 (SAKA)

## Denial of Loans on the basis of CIBIL

## 1899.    SHRI M. MURALI MOHAN

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has received complaints from the individuals, salaried persons  and  small  and  medium  enterprises  for  denial  of  personal,  study  and home  loans  by  the  Banks/Bankers  particularly  SBI  on  the  pretext  of  Credit Information Bureau (India) Limited (CIBIL) reports and if so, the details thereof;
- (b) whether the reports provided by the CIBIL are not updated and accurate and if so, the details thereof; and
- (c) whether any directives have been issued to all the public and private banks to sanction  all  kinds  of  loans  including  personal  and  study  tours  and  if  so,  the details thereof ?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a) : Details of complaints from individuals, salaried persons and small and medium enterprises for denial of personal, study and home loans on the pretext of CIBIL reports are given in the Annexure .

(b) : The Banks provide credit information of its borrowers to CIBIL and other Credit Information Companies (CICs) on monthly intervals for updation. In rare cases, where any  discrepancy  in  the  CIC  report  is  observed  by  the  Bank/Customer,  the  same  is taken-up with Credit Information Companies, before taking any credit decision.

- (c) : Guidelines  for  issuance  of  loans  and  advances  including  personal  and education loans by banks have been issued by Reserve Bank of India vide RBI/201516/95DBR.No.Dir.BC.10/13.03.00/2015-16 dated 01.07.2015 and FIDD.CO.Plan.1/ 04.09.01/2016-17 dated 07.07. 2016.

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## Annexure

## Lok Sabha Unstarred Question No. 1899 for 21.12.2018 regarding 'Denial of Loans on the basis of CIBIL'.

Details of complaints from the individuals, salaried persons and Small and Medium Enterprises for Denial of personal, study and home loans by Public Sector Banks.

| Name of the Bank       |   S. No. | Name of Complainant       | Subject                                                                                                                                                                                                                                                                                                                                                                      | Action Taken                                                                                                     |
|------------------------|----------|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
| Punjab National Bank   |        1 | Subhash Kumar             | Non sanction of Housing Loan from BO Abhishek Ind., Barnala, Punjab. Complaint received on 10.09.2018. Applicant had applied for housing loan and had told that there was no loan outstanding against his name. CIBIL report was generated by branch, which showed three loans already taken by the party out of which one sanctioned by Punjab & Sind Bank was written off. | The complaint was dropped after getting facts from Zonal Office, Ludhiana.                                       |
|                        |        2 | Nirmala Devi              | Complaint received on 27.06.2018. Personal Loan was denied due to CIBIL Report entry.                                                                                                                                                                                                                                                                                        | Completed and dropped.                                                                                           |
| Bank of Baroda         |        1 | Harsh                     | I am unable to get further Home Loan to buy my flat due to clerical mistake from Aminabad Branch which made by CIBIL score down. Branch denied to give loan although fault is from their end. Help is sought from Regional Office.                                                                                                                                           | Complaint received on 16.04.2018 and resolved.                                                                   |
|                        |        2 | Vidhi Garg                | I have got admission in NIMIMS, Hyderabad, PGDM Course. Fathers CIBIL score is 746. But, due to a dispute in a cre.ca he has been mentioned as willful defaulter. That's why there is a problem in sanctioning it.                                                                                                                                                           | Complaint received on 05.05.2018 and resolved.                                                                   |
|                        |        3 | Satya Narain Agarwal      | A/c. closed on 17.4.2018 but not updated in CIBIL. That is serious deficiency at your part. Due to non updating my obligations are existing and loan amount is lesser to purchase another house.                                                                                                                                                                             | Complaint received 24.06.2018 and resolved.                                                                      |
|                        |        4 | Mukesh Kumar Laxmi Narain | I applied for housing loan which was refused by branch for the reason we are not eligible for the same. However myself and my wife both are having CIBIL score of 810 and ITR above Rs.7 Lakhs and Rs.41 Lakhs respectively.                                                                                                                                                 | Complaint received on 11.07.2018 and resolved.                                                                   |
| Oriental Bank of Comm. |        1 | Sonal Mishra              | Sanctioning of Education Loan on a/c of adverse remarks in CIBIL of parents.                                                                                                                                                                                                                                                                                                 | Alternate joint borrower provided and loan sanctioned by the bank.                                               |
|                        |        2 | Gunasekran                | Non sanctioning of Education Loan of his son G. Balaji on a/c of adverse remarks in CIBIL of parents received on 12.09.2018 and 25.11.2018.                                                                                                                                                                                                                                  | Applicant has been requested to provide alternate joint borrowers for considering the case as per bank's policy. |
| Syndicate Bank         |        1 | M. Balasubraman iam       | Sanction of Term Loan and OD for setting up of a Shuttle Furniture Unit.                                                                                                                                                                                                                                                                                                     | Rejected by bank.                                                                                                |