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



Read : Part I of CIBIL



Since April 2011, Credit Information Bureau (India) Ltd (CIBIL), India's first credit information company, has allowed consumers to purchase their "CIBIL TransUnion Score" directly from CIBIL. of credit institutions, is now available to consumers for Rs 450, CIBIL Managing Director Arun Thukral told reporters here. TransUnion Score helps the consumers to  assess their credit history better and enable them to 'see themselves as lenders do.

Knowing their CIBIL TransUnion 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 TransUnion 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 TransUnion Score by following an online payment procedure or through a demand draft. The higher the score, the more favourably 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.







Is CIBIL a list of defaulters?


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.



Does Banks report the names of  all customers' to CIBIL?

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.



On what segments does CIBIL provide a credit report?

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.



What is the content of a CIBIL report?

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.



Can a customer's name be removed from CIBIL's database?

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.





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?

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.




If a customer's family member has defaulted, will it affect the customer's status in CIBIL's records?


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.



What is Credit Score :


  • The credit history & repayment behaviour 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  unfavourable 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.