My CIBIL score dropped dramatically.
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I'm genuinely disturbed. How could a single question reduce my CIBIL score by 42 points when the simulator claimed it would not? Is the new algorithm too strict, or did the bank make a mistake in reporting? If my score is this delicate, do I have enough margin for safety to apply for my next business loan?
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Yes, it's a bit concerning to see a 42-point drop. Recent RBI mandates require weekly reporting to monitor the credit-seeking behavior of lenders in near real-time. Factors like hard inquiries or changes in usage can indeed lead to significant drops.
For your business loan, to get the best rates, your score should be above 750.
Make sure you check your report; if it is correct, then wait for 4-6 months to stabilize before you apply again, just to be safe.