Did Not Repay Any Loan? You Are Not Eligible for SBI Jobs

After a long time, the SBI clerk recruitment 2016 has been announced to fill Junior associates & Junior Agricultural Associates.But this year, it is different in many ways including some new rules being introduced for applicants.One of it is related to loans & credit card dues wherein candidates who had defaulted in repayment are ineligible to apply for their clerical recruitment.


State Bank of India being the largest public sector bank in India is also one of the biggest employment generator in banking sector.It is the reason why every bank job aspirant in India looks forward for jobs to be announced by SBI.


While the recently released SBI clerk recruitment 2016 notification has increased the hopes of candidates, they are also concerned about some changes.


SBI Clerk & PO Recruitment: 2 New Rules to Note

There are eligibility conditions for candidates to fulfil if they wish to apply for SBI junior associate posts.In addition to it, there are two new rules which many would have seen in the online application form:




1) Repayment of Loans: For the first time, we are seeing a govt bank ask about the candidate`s credit history for recruitment.In their official notification, SBI says,

“Candidates with record of default in repayment of loans/credit card dues and/or against whose name, adverse report of CIBIL or other external agencies are available are not eligible to apply for the post.”

It simply means - If you had taken education loan/ home loan/ vehicle loan/ personal loan/ credit card loan & are not repaying it regularly or defaulted (missed) repayment – you are not eligible to apply for these clerk posts.


How loan repayment affects you?

CIBIL (Credit Information Bureau) is the company that keeps track of every individual`s repayment record of loans.This information is provided to them by banks & other financial institutions every month.


With this info, CIBIL creates a credit report & provides scores (also called CIBIL score)for every person who availed a loan.

  • If you are paying the EMI/ dues promptly without any delay, your score would increase, placing you in safe zone.
  • Incase you are defaulting in repaying the loan regularly or has not repaid the loan/ credit card dues fully for a long time, your CIBIL score is lowered.

A low credit score means bad credit history.


Banks wont offer you any loans the next time & even if they sanction the loan, it would be at a much higher rate of interest.




How SBI is going to use it?

State Bank of India has not detailed the exact manner on how they intend to use credit score data in recruitment.But they look very serious to not allow loan defaulters to become their employees.


The possibility is, SBI may verify the CIBIL scores of selected candidates before appointment as part of their background verification process, just like private banks


2) Complaint Against Your Character: This is another criteria that we are seeing in SBI recruitment for the first time.Here is the exact condition from their advt:

“Candidates against whom there is/are adverse report regarding character & antecedents, moral turpitude are not eligible to apply for the post.

It means – Those who are having bad conduct character report in their name are not eligible to apply for these jobs.


Any pending police case or enquiry filed on account of bad behavior would also come under this category.With increasing number of frauds reported in banks, SBI doesnt want to take any chances & prefers to hire people with clean records only.


Case Filed; Political Parties & Unions Against this Rule

A bank job aspirant has submitted a public interest litigation (PIL) in madras high court against State Bank of India on this condition of default in loan repayment.


He had submitted that poor students who had taken education loans & couldnt find a job are ineligible to apply for jobs in SBI, because of this condition.

Therefore, he has sought the court to direct the bank to cancel the earlier notification & issue a fresh recruitment notice.

Political leaders & bank unions have also slammed SBI ever since the notification was published, terming the condition as ‘unconstitutional’.


C.H. Venkatachalam, general secretary of All India Bank Employees' Association (AIBEA) told IANS, "A fresh graduate cannot repay his education loan if he does not get a job. If organisations like SBI bar such candidates even from applying, then how can they repay their loans? The condition is obnoxious & unfair and should be changed”.


Regional parties in the state of Tamil nadu during their recent elections also took up this issue & condemned the bank for framing such rules.


S. Sudhakar, general secretary of the Communist Party of India (CPI) wrote a letter to the union finance minister Arun Jaitley uring him to intervene & scrap the condition of SBI that prevented education loan defaulters from applying for clerical recruitment.


But the Union government & State Bank of India have remained silent till now.


Infact, the SBI PO recruitment notification announced later also restricts loan defaulters from applying!


Many candidates had taken educational loans but couldnt repay it on time due to unavailability of jobs.With this new rule, young unemployed graduates are going to find it tough to appear for SBI jobs & recruitments as well.


Will other banks also implement such a restriction or not will be known after the IBPS bank exams are announced.

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