lOw CIBIL score means penalisation by extra interest,charges.But the common sense is that the person having this type of behaviour is more likely to default or skip payments may be because of his earnings,low income,extra spending habits.The institution giving the loan will get more defaulters this way.Some other way should be seen so that the EMI paid by that low score person is equal to normal good scoring person but with a caution note to be disciplined, which i think will encourage the defaulters to be on right path.
