A bad credit history can not only affect your chances of getting a loan but also hamper your chances of landing a job in the banking sector.
While some lenders do it for employees across the board, other do it only for select roles.
“We do check the Cibil scores of people, especially those in the compliance and governance roles before we hire them. This is particularly done for those who are in client facing and other sensitive roles in the organisation,” said a senior human resource official in a private bank who did not wish to be named.
Bankers explain that checking the credit history of people in this sector is important to maintain financial hygiene. An individual’s CIBIL score typically gets hit if you or your co-borrower has defaulted on an EMI payment (equated monthly installment) or has not settled a loan or credit card dues.
While some other lenders may not check your CIBIL score but they do check your credit history.
“We do not check the score but we do run a check to ensure that you are not a part of the defaulters list in CIBIL. This is a part of our background check and we do it for employees across the board,” said Kishore Poduri, Head-HR, DBS Bank India.
This has been a standard practice internationally but is now slowly gaining ground in India too.
Sunil Goel, Director, GlobalHunt explained that going ahead this could become a part of the standard background check done by companies across sectors.