Credit Information Bureau (India) Limited is India’s first Credit Information Company (CIC) founded in August
2000. CIBIL collects and maintains records of an individual’s payments
pertaining to loans and credit cards. These records are submitted to CIBIL by
member banks and credit institutions, on a monthly basis. This information is
then used to create Credit Information Reports (CIR) and credit scores which
are provided to credit institutions in order to help evaluate and approve loan
applications. CIBIL was created to play a critical role in India’s financial
system, helping loan providers manage their business and helping consumers
secure credit quicker and on better terms.
CIBIL collects
and maintains records of an individual‘s payments pertaining to loans and
credit cards. These records are submitted to CIBIL by banks and other lenders,
on a monthly basis. This information is then used to create Credit Information
Reports (CIR) and credit scores which are provided to lenders in order to help
evaluate and approve loan applications.
Since, the credit score and CIR not only helps loan providers
identify consumers who are likely to be able to pay back their loans, but also
helps them to do this more quickly and economically. This translates into
faster loan approvals.
Until recently, there
was little visibility and transparency with regards to the loan approval
process and the elements that loan providers used to evaluate your loan
application. Since, CIBIL has made your credit score and CIR available to you,
you will be able to see how valuable a customer you are to loan providers.
CIBIL empowers both loan
providers and individuals to see their world more clearly and hence, take
better and more informed decisions.
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 commercial and consumer
credit-related data and collates such data to create and distribute credit
reports to its Members which are credit institutions and banks in India.
CIBIL’s over 1300 strong member base includes all leading public & private
sector banks, financial institutions, non-banking financial companies and
housing finance companies.
CIBIL’s products,
especially the Credit Information Report (CIR) and CIBIL TransUnion Score are
very important in the loan approval process. Once the loan provider has decided
which set of loan applicants to evaluate, it analyzes the CIR / Score in order
to determine the applicant’s eligibility. Eligibility basically means the
applicants ability to take additional debt and repay additional outflows given
their current commitments. Post completion of these first 2 steps the loan
provider will request for the applicants income proof and other relevant
documents in order to finally sanction the loan.
The CIR and Credit Score
not only help loan providers identify consumers who are likely to be able to
pay back their loans, but also help them to do this more quickly and
economically. This translates into faster loan approvals for consumers. An
individual with a credit score above 750 has better bargaining power with the
lenders, since he is perceived as a responsible borrower. Since consumers can now access their
Credit Scores and CIRs directly from CIBIL at the cost of INR 500, they can see for themselves how they
are perceived by the lenders before applying for a loan. Hence, CIBIL empowers
both loan providers and individuals to see their financial and credit history
more clearly and hence, take better and more informed decisions.
CIBIL is ISO 27001:2005 certified- the most recognized security standard
in the world. CIBIL is one of the 1000 companies in the world, which have
achieved ISO 27001 certification, and one of the first few in India.
