The credit score that checks your “worthiness” and “eligibility” before applying for loans is seemingly a flawed system that is entirely controlled by two private companies without checks.
Karti P. Chidambaram, an AICC member, called out CIBIL, one of the main culprits behind this arbitrary system along with EXPERIAN, during his speech in the parliament. He highlighted how these private companies have all the data about everyone’s transaction history but don’t offer any transparency to their operations.
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The general public remains in the dark about how they calculate the credit score and why it is given so much importance by the banks. Chidambaram complained that despite clearing his debts on time his CIBIL score is bad and there is no way to even approach or appeal the integrity of this system.
The issue raised by the Tamil MP is crucial for the middle class and farmers. The latter are usually paying off their loans via government subsidy which often doesn’t get reflected on their credit score, affecting their eligibility to take loans in the future.
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There are many problems in this privately-run financial system that our government is relying on. People are adamant that the Finance minister should introduce changes to make it more transparent and reliable.
