When you apply for a loan, the lender carries out a hard enquiry and fetches your credit score. In case you apply for a loan from SBI, the country’s largest lender, it will request your credit report from a credit bureau, probably CIBIL, which is the biggest and the oldest credit bureau operating in India.
Based on your CIBIL score, SBI will decide if it should approve your loan application or not. However, a number of other factors will also be considered before approving your application.
Banks fetch the credit score to gauge your creditworthiness and evaluate the risk of lending you the money.