Can a low CIBIL score affect a government employee's job?
My mother is a cashier in a government-owned public sector insurance company. If her CIBIL score falls below 650, can she be terminated, demoted, or suspended? Is there any law related to low credit scores for government employees?
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Advocate By LEAD INDIA
Answered: 03 May 2025
There is no law that allows a government insurance company to punish or remove an employee just for a low CIBIL score. However, if loan defaults involve fraud or dishonesty, it could be an issue. For regular low credit score cases, there is no direct threat to the job or promotion. For further legal assistance contact us on our helpline number.
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