How CIBIL Scores Affect Job Opportunities?

While not a mandate, many employers in India consider the applicant’s CIBIL score as part of the hiring process. This is especially true for jobs in the finance sector. It also plays a major role in the hiring for significant positions. Let’s understand how and why in greater detail.

CIBIL score checks have become customary for a range of reasons, some of which are provided below:

1. Conducting a Thorough Background Check

Several companies consider a background check essential before hiring a potential employee. The employee CIBIL check can form part of the background check. If a job applicant has a low CIBIL score, it may be reflective of the applicant’s ability to manage finances.

2. Monitoring Irresponsible Behaviour

A bad CIBIL score may be indicative of an employee’s irresponsible nature of managing finances. This is because not managing one’s loans and repayments responsibly usually leads to a low score. Companies may consider this to be an extension of the applicant’s personality. It may be used to assess the amount of responsibility an employee can take.

3. Gauging the Debt’s Impact on Performance

Many people may opt for home loans, student loans, and even personal loans. However, they may not pay the EMIs within the permissible time and even default on occasion. It often leads to a debt trap, where borrowers can get stuck for long periods of time. This is an undesirable situation for the borrower and can give rise to high amounts of stress.

Checking the CIBIL score for employees is a recent trend in India. Currently, CIBIL scores are checked for positions across the finance sector. For instance, the State Bank of India (SBI) released a job notice in 2016. It stated that the CIBIL score would be a criterion for the employee’s selection. Recently, multiple companies from various sectors have started conducting CIBIL score checks during the hiring process. So, it is best to be prepared and build a good credit profile.