The Reserve Bank of India (RBI) is set to implement the Expected Credit Loss (ECL) framework from April 1, 2027. This new rule requires banks to provide for potential loan defaults in advance rather than waiting for an account to become an NPA. Consequently, borrowers with a CIBIL score below 730, who make up about 62% of applicants, may face difficulties in securing home, auto, or education loans. Those with low credit scores might be charged higher interest rates or asked for additional collateral, while banks will shift their focus towards premium customers with scores above 730. https://argusnews.in/business/62-percent-people-may-not-get-home-loans-new-rule-explained #creator program