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Credit Information Bureau (India) Limited

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Credit Information Bureau (India) Limited or CIBIL is India’s first Credit Information Company (CIC) founded in August 2000. The company plays a critical role in India’s financial system. CIBIL’s corporate office is in Mumbai, Maharashtra.

Whether it is to help loan providers manage their business or help consumers secure credit faster and at better terms, the use of CIBIL’s products have led to a massive change in the way the credit life cycle is managed by both loan providers and consumers.

Role of CIBIL to loan providers and consumers:CIBILprocess

CIBIL collects the data from member institutions (banks and other lenders) and maintains records of a customer’s (individual or any business) payments pertaining to loans and credit cards. This information is then used to create Credit Information Reports (CIR) and credit scores. These credit scores and reports can be used by the lenders to evaluate and approve loan applications.

The CIBIL scores ranges from 300 to 900. A greater CIBIL score is a good score for the evaluation of loans. So if a person pays his dues in a timely manner, he obtains a good CIBIL score. Now when this customer again comes to ask for a loan, his CIBIL score will be checked and if it is good he will have faster loan approval. Loan providers prefer credit scores which are greater than 750.

The factors that effect an individual’s CIBIL score:

  • Multiple Loans and Credit Cards: Multiple secured and unsecured loans and multiple credit cards affect the CIBIL score because they indicate high debt a customer already carrying.
  • Delayed payments: Delayed payments and non-payments may bring down the credit score.
  • Increased credit limit: Requesting to increase the credit limit of credit card can also affect credit score because it indicates that the customer totally relies on credit cards.
  • Not tracking your credit report: Sometimes the credit report may contain wrong information due to any faults by the lenders, so one must keep on tracking their reports.

If a customer wants to know his Credit Score and Report, he can apply with the CIBIL by filling an application form giving your complete details and paying Rs 500. If the information is found authentic, the customer can access his Credit Score and also the Credit Score and Report is emailed.

In 2017, CIBIL launched a credit ranking system for medium, small and micro enterprises (MSMEs) to predict the probability of a company turning into a non-perfoming asset (NPA).