08-July-2016 written by : FSI-Team
A good credit score is a must for a loan, most of us might be aware of this fact. Often in our earlier posts we gave also discussed that how a good CIBIL score in future could be a pre-requisite to getting jobs in the higher management cadres or in some financial domain companies but now the future is here! It is no more something that will happen a few years down the line; SBI has put it on the fore front by making it a prerequisite for getting a job with them.
The State Bank of India which is the largest public sector bank in India recently announced after a long time that it would be recruiting people to fill in the positions of Junior Associates for Customer Support and Sales and Junior Agricultural Associates. Obviously there are some basic requirements that a person will have to comply with for being eligible for the job. One pre-requisite came as a surprise to most; this was the requirement of a good credit rating. If you plan to approach the bank for a loan then you would not be surprised if this were laid down as a basic condition. Many banks and other financial institutions that are also big employment generator lay down credit health as a condition to get a job with them people are bound to take notice. As per the advertisement by a leading bank, people with poor credit score, adverse reporting about character and behavior cannot apply for the job. The candidates were urged to do a CIBIL Score check before applying for the job. So if you have unpaid credit dues or have defaulted on your EMIs you can bid farewell to your dream of getting a job with a leading employer.
Bank unions however urged the bank to make an exception in case of those who have an education loan and are delayed in making payments due to lack of employment. Thus someone who defaults on unsecured personal loans or a commercial loan willfully should be treated differently from a student who may want to repay an education loan but may be unable to do so as he may be unemployed.
CIBIL Score is a three digit number that is calculated based on your credit history. Thus based on facts like payment records, credit utilization ratio, credit mix, loan tenure and credit enquiries, the rating agency scores a person from 300 to 900. This lets a lender evaluate the risk potential an individual poses if he/she is given a loan. Most banks are unlikely to lend to those who have a credit score below than 750, some lenders may offer loan for low credit score but these will be at higher rates.
From an employer’s perspective; a person who has not been able to manage his own finances may not be a good choice in any role that requires decision making. Employers need high work ethics, financial integrity, discipline and above all being trustworthy. The premise here is that if a person does not have enough discipline and integrity to pay off his own dues then he cannot be expected to bring it in his professional life.
So now being credit healthy is important not only if one wants access to credit but also if one plans to apply a job. As stated earlier some organizations do already have the requirement in place but with a large and mainstream bank like SBI doing it, the trend could become more common and accepted.