Under the new rules of RBI, if the credit score is bad, you will not be able to buy insurance, will not be able to invest in the stock market, there will be difficulties in taking many other facilities, loans will not be available easily
The Reserve Bank of India has given permission to many companies to access the data of credit bureaus after the recently changed rules. These rules will benefit those fintech companies, which do not have an NBFC license. Also, agreements have been made with banks for giving loans.
Under the new rules, these companies will be able to give loans to customers on the basis of credit score. This means that if your credit score is good, then companies will give you loans at a cheaper rate and easily. Getting a loan will be difficult if the credit score is bad. Generally a credit score of 750 or above is considered better.
Under the new rules of RBI, these companies can offer more schemes like Buy Now Pay Later to their customers by signing up with e-commerce companies. After fintech companies get access to data related to credit score of customers, many more options will open for honest borrowers to take loans. This will increase competition among these companies for lending, which will benefit the customers.