CIBIL - Credit Infomation Bureau of India can be reached at www.cibil.com

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Credit Information Bureau (India) Limited (CIBIL) - Part 1

(   Click here to go to Part 2   )

Some News Items About CIBIL:

How Cibil plans to curb home loan frauds                          Cibil to rate individual credit defaulters                           CIBIL members can have credit score of borrowers

CIBIL is India's first credit information bureau and is a repository of factual information on the credit history and repayment records of commercial and consumer borrowers.  CIBIL  provides specific information to its Members in the form of Credit Information Reports (CIR).  It caters to both commercial and consumer segments. The Consumer Credit Bureau covers credit taken by individuals while the Commercial Credit Bureau will cover credit taken by non-individuals like partnership firms, proprietary concerns, private and public limited companies, etc.  Credit Information Bureau (India) Limited (CIBIL) was incorporated in 2000.  The Consumer Bureau was launched on April 5, 2004.  At present CIBIL is maintaining the database of Suit-Filed accounts of Rs.1 Crore and above and Suit-Filed accounts (willful defaulters) of Rs. 25 Lacs and above.  
 

The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors’ portfolio quality. CIBIL provides a vital service, which allows its Members to make informed, objective and faster credit decisions.

State Bank of India (SBI), Housing Development Finance Corporation Limited (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc. (TransUnion) signed  Shareholders’ Agreement on January 30, 2001, with a view to establish the Credit Information Bureau (India) Limited (CIBIL).   D&B and TransUnion, are also the technology partners and are well-known in the credit information businesses worldwide. 

The establishment of CIBIL is a major initiative taken by the Government of India and the Reserve Bank of India in their drive to improve the working of the financial system, specifically to contain future NPAs.  Reserve Bank of India had issued  instructions on data submission to all credit grantors advising them on the type and periodicity of data to be submitted to CIBIL and has also instructed them, that as a prudential requirement, they must immediately incorporate a 'Consent Clause' in all the loan documents (after October 1, 2002), thus enabling them to share this data with CIBIL.  . The relationship between CIBIL and its Members is one of close interdependence. 

The major objectives for establishing  CIBIL includes (a) the need for comprehensive credit information by gathering credit related information regarding commercial and consumer borrowers, (b) maintaining a database of this information and selling the information in the form of credit reports to a closed user group of Members.

CIBIL primarily gets information from its Members only and at a subsequent stage will supplement it with public domain information in order to create a truly comprehensive snapshot of an entity’s financial track record.

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.    CIBIL's CIRs are aimed at helping credit grantors make fast and objective lending decisions. This will contribute to a more competitive credit marketplace among Credit Grantors. With a Bureau in place, responsible customers can expect faster and more competitive services at better terms from the Credit Grantors.

 
The basic Commercial CIR will broadly contain:
  • Borrower information
    1. Name and Address
    2. D-U-N-S® Number
    3. Other Identification numbers; e.g. PAN, Registration No.
    4. Legal constitution
    5. Relationship details; e.g. major shareholders, directors and their addresses and D-U-N-S® Number
    6. Number of inquiries made on the borrower
  • Account Details
    1. Number of credit facilities
    2. Credit type
    3. Loan amount
    4. Outstanding amount
    5. Asset classification
    6. Willful defaulter and suit-filed status
    7. Guarantor details

The basic Consumer CIR broadly contains:

  • Borrower information
    1. Name
    2. Date of birth
    3. Identification numbers; e.g. PAN, Passport No., Voter ID No.
    4. Address
  • Account Information
    1. Account type
    2. Ownership indicator
    3. Sanctioned amount
    4. Date Opened / Sanctioned
    5. Date of last payment
    6. Current balance
    7. Date closed
    8. Amount overdue
    9. Suit-filed status
    10. Days past due / Asset classification
 

The CIR only provides available factual credit information and does not provide any opinion, indication or comment pertaining to whether credit should or should not be granted. The credit grantors who have received an application for credit will make the credit decision. CIBIL does not grant or deny credit.

The CIR does not contain:

CIBIL does not classify any accounts as default accounts. It merely reflects this information after the Member has classified it as such. The Number of Days Past Due and / or Asset Classification as per RBI definition as submitted by Members is reflected in the CIR.

The aim of CIBIL's Commercial Credit Bureau is to minimize instances of concurrent and serial defaults by providing credit information pertaining to non-individual borrowers such as public limited companies, private limited companies, partnership firms proprietorships, etc. CIBIL maintains a central database of information as received from its Members. CIBIL collates and disseminates this information on demand to Members, in the form of Commercial Credit Information Reports (CIR) to assist them in their loan appraisal process.

The objective of CIBIL's Consumer Credit Bureau is to minimise defaults and maximise credit penetration and portfolio quality, by providing comprehensive credit information pertaining to individual borrowers. The Bureau collects credit information from its Members. It then collates and disseminates, on demand, this information in the form of Consumer Credit Information Reports (CIR) to aid in the loan appraisal process

The data from  CIBIL can be used by Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies.   Data sharing will be based on the Principle of Reciprocity, the basic elements of which would be that reports could be obtained from CIBIL only by Members who contribute all data on all borrowers.

( Click here to go to Part 2 )

 

Source : Cibil.com