Credit
Information Bureau (India) Limited (CIBIL)
1 What is CIBIL?
What are its aims?
CIBIL is the repository of
information which is pooled in from all Banks and lending Institutions
operating in India. CIBIL have a database size of over 17
crore consumer records and over 65 lacs company records contributed by our
over 500 Members.
The Credit
Information Companies (Regulation) Act, 2005, and various Rules and Regulations
issued by Reserve Bank of India has empowered CIBIL or (Credit Information
Bureau (India) Ltd to collect the data from various types of credit grantors
(i.e. lenders). and then share the same within the group. The
legislation has enabled banks to submit data to CIBIL without obtaining
borrower consent this has enabled CIBIL to tracks repayment history of bank
customers loans, credit cards and further banking finances.
CIBIL’s aim is to fulfill the
need of credit granting institutions for comprehensive credit information by
collecting, collating and disseminating credit information pertaining to both
commercial and consumer borrowers, to a closed user group of Members. Banks,
Financial Institutions, Non Banking Financial Companies, Housing Finance
Companies and Credit Card Companies use CIBIL’s services. Data sharing is
based on the Principle of Reciprocity, which means that only Members who have
submitted all their credit data, may access Credit Information Reports from
CIBIL. The relationship between CIBIL and its Members is that of close
interdependence.
2.
Who owns CIBIL?
CIBIL's equity was held by State Bank of India,
Housing Development Finance Corporation Limited, Dun & Bradstreet
Information Services India Private Limited and Trans Union International Inc.
The shareholding pattern was in the proportion of 40:40:10:10 respectively.
The shareholding pattern has now been
diversified to include the number of other banks and financial institutions
representing varied categories of credit grantors
3. How Does CIBIL operates?
For credit
grantors to gain a complete picture of the payment history of a credit
applicant, they must be able to gain access to the applicant's complete credit
record that may be spread over different institutions. CIBIL collects company
and consumer credit-related data and collates such data to create and
distribute credit reports to Members.
Thus, we can say that CIBIL
collects commercial and consumer credit-related data and collates such data to
create and distribute credit reports to Members. (A Credit
Information Report (CIR) is a factual record of a borrower's credit payment
history compiled from information received from different credit grantors. Its
purpose is to help credit grantors make informed lending decisions - quickly
and objectively).
4 On
which segments does CIBIL provide credit reports?
CIBIL is a composite Credit Bureau, which
caters to both company and consumer segments. The Consumer Credit Bureau covers
credit availed by individuals while the Company Credit Bureau covers credit
availed by non-individuals such as partnership firms, proprietary concerns,
private and public limited companies, etc.
5.
What is a Credit Information Report?
A Credit Information Report (CIR) is a factual
record of a borrower's credit payment history compiled from information
received from different credit grantors. Its purpose is to help credit grantors
make informed lending decisions - quickly and objectively.
6. What Should One Do, if One Finds Mistake in
the CIBIL Report:
Typically, one checks credit
report when one's loan gets rejected and the loan provider tells that it is because
of some information on credit report. Mistakes on a credit report can be
easily corrected with the CIBIL’s help. All you need to do is:
a) Purchase your CIBIL credit report
b) Identify the erroneous information
c) Provide name, address, date of birth, an
Control Number and the nature of the error on the credit bureau’s website.
The Control Number is a unique 9-digit number found
on the top right hand side of your CIBIL Credit Information Report and is
generated every time a credit report is generated. It is very important to
provide this number to the bureau, as it helps identify the CIBIL credit report
on which you would like to ‘dispute’ information.
If you wish to know more details about the
Dispute Rederessal System of CIBIL / consumer complaints with CIBIL. you read
the details by clicking on the following link
7. How Can I purchase my own Report:
Since April 2011, Credit Information
Bureau (India) Ltd (CIBIL), India's first credit information company, has
allowed consumers to purchase their "CIBIL Trans Union Score"
directly from CIBIL. of credit institutions, is now available to consumers for
Rs 450, CIBIL Managing Director Arun Thukral told reporters here. Trans Union
Score helps the consumers to assess their credit history better and enable
them to 'see themselves as lenders do.
Knowing
their CIBIL Trans Union Score will enable consumers to better manage their
credit history, avail speedier access to credit and derive benefits associated
with good credit history. The score is provided along with the CIBIL Credit
Information Report (CIR). The Trans Union Score is a three-digit numeric
summary (ranging from 300 to 900) of a consumer's credit history, compiled from
information received from credit institutions who are members of CIBIL.
An individual's score provides a
credit institution with an indication of the "probability of default"
based on his/her credit history. It helps in estimating the likelihood of
repayment of loan based on the individual's past pattern of credit usage and loan
repayment behaviour. The closer the score is to 900, the more
confidence the credit institution will have in the individual's ability to
repay the loan and hence, the better the chances of his/her application getting
approved.
Consumers can
pay for availing their Trans Union Score by following an online payment
procedure or through a demand draft. The higher the score, the more favorably
it is viewed by credit institutions. However, every institution has its own
benchmark of what constitutes a good credit score. CIBIL does not recommend any
cut-off score loan application eligibility.
The country's first generic score has become the most
reliable indicator for prudent decision-making for credit grantors. Financial
discipline, coupled with prudent credit management and a good payment history,
will ensure that individuals enjoy all the benefits associated with having a
good credit score, Thukral said.
CIBIL benefits both credit grantors
and consumers by collecting, analysing and delivering information on credit
histories of millions of borrowers. It provides its members with information on
both consumer and commercial borrowers, thus enabling them make sound credit
decisions across both individuals and businesses.
SOME
MORE FREQUENTLY ASKED QUESTIONS (FAQs)
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Is CIBIL a list of defaulters?
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No. CIBIL only maintains
account information of various loan customers and credit card customers
irrespective of the fact whether they are defaulters or not. The information
comprises their name, address, monthly repayment track record, outstanding
amounts, etc.
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Does Banks report the names
of all customers' to CIBIL?
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Only the names of the
borrowers i.e. those customers who have availed of a loan or a credit
card from a CIBIL member, are reported to CIBIL. Details of
liability accounts such as savings, fixed deposits and recurring deposits are
not sent to CIBIL.
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On what segments does CIBIL
provide a credit report?
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CIBIL is a repository of credit
information and in the consumer segment it provides information on the
various loans availed of and cards held by an individual from a member bank.
Its commercial report covers the credit availed of by non-individuals.
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What is the content of a CIBIL
report?
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CIBIL only reports loan and
credit-card information such as repayment track, loan type, amount
outstanding, loan amount disbursed, various dates, etc. The report also
contains a customer's personal information like name, address, date of birth,
phone number(s), passport number, voter's ID number, PAN, etc. In a
commercial credit report the inputs are similar but include some additional
details pertaining to the commercial entity like legal constitution,
registration number, etc. The credit report does not provide any opinion or
comment on whether a loan should be extended to a customer. It reports the
facts that its member banks and financial institutions have reported.
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Can a customer's name be removed
from CIBIL's database?
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Member banks contribute to CIBIL
on a monthly basis data of all their customers who maintain a
loan/credit-card account with them. Hence a customer's name cannot be removed
from CIBIL's database.
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If a loan is denied to a customer
by one bank on the grounds of the CIBIL report, will it be denied by other
banks too?
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Approval or rejection of a credit
application depends on the bank's policies. Rejection by one bank on the
grounds of the CIBIL report might not imply rejection by another bank.
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If a customer's family member has
defaulted, will it affect the customer's status in CIBIL's records?
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The CIBIL report has information
of loan/credit details of the borrower only. Therefore, for a retail
customer, it would not matter if someone in his/her family has defaulted. If
the customer's repayment track record is okay, his/her credit score will not
be affected by that of his/her family members.
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What is
Credit Score:
- The credit history & repayment behavior of a customer is translated into a number developed by CIBIL, called 'credit score'.
- It is an indicator of the credit-worthiness of a customer. It predicts the likelihood of a consumer defaulting on a payment. A borrower who is more financially disciplined will have a higher credit score. Higher credit scores are better.
How Does a
Score Is Related to Loan Appraisal:
- A strong credit history & a higher score will get you better credit terms - better loan amounts & attractive rates of interest.
- If you have defaulted on any payment, then your credit history will be impacted and it may limit your ability to get a new credit product, or sustain the current product
What if a Bank
has rejected my loan application on account of unfavorable CIBIL report /
score:
- If the bank is rejecting a loan on the grounds of the CIBIL report being unfavourable, then you can ask your bank for a copy of your CIBIL report or purchase the same from CIBIL.
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