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Is the loan applicants credit history checked by banks before giving approvals for loans and credit

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You need to understand that CIBIL rating is now almost a standard which is being followed by almost all the lenders across the country

It is more like a first step that needs to be cleared before getting any loans. You income matters but not so much as your CIBIL score does. For e.g., a person who has an annual income of INR 5 lakhs and also has an excellent CIBIL report has a greater probability of getting a loan as compared to a person having an annual income of INR 20 lakhs with a very poor CIBIL score or even an average score/report . If a person has faced problems in the past such as if he/she might has gone for settlement of loans (ie. paying less than what they owe), irregularity in paying EMI's etc. , then that person will probably have a really difficult time when applying and getting any loans in future..

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