The Bangladesh Bank’s Credit Information Bureau (CIB) keeps track of borrowers’ loan history. Before giving out loans, credit cards, or business funding, banks and other financial organizations look at this report. The status in the report shows how responsibly a borrower pays back loans.
No Status
Your CIB normally says Nil when you don’t have any classified loans. You either don’t have any active loans or your loans are all up to date and not late. This is a clean record, so it doesn’t stop you from applying for new credit.
STD signifies that the loan is going as planned. Payments on installments are made on schedule and within the time frame. Banks think this is a good credit profile. If you have a Standard status, you are more likely to get a loan.
SMA is a type of early warning. It means that payments are late after a short grace period, but the debt is not yet considered to be in default. You can get your account back to Standard if you pay your bills on time. If you don’t pay attention to SMA, you could get a lower score.
SS
SS signifies that the debt is formally classed because it is very late on payments. This means more risk for banks. People who are in SS status may have trouble getting fresh loans until they pay off their debts or regularize their status.
DAF
DAF usually means a very bad categorization stage, when recovery is no longer certain. This position has a big impact on creditworthiness and could lead to legal action to get the money back.
In conclusion
Knowing what CIB statuses mean can help you preserve your financial reputation. Keeping your STD or Nil status makes it easier to get loans, but if you don’t pay on time, your credit score might drop swiftly in Bangladesh.
FAQs
1. How long does a classified status stay on a CIB report?
A classified status remains until the loan is regularized or fully settled. Updated information is reported by banks to Bangladesh Bank periodically.
2. Can I get a loan with SMA status?
It may be possible, but approval becomes difficult. Banks prefer applicants with STD or Nil status.
3. How can I improve my CIB status?
Pay overdue installments immediately, settle outstanding loans, and maintain regular repayment to restore a positive classification.
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