Some Queries of Readers on CIBIL

Some Queries of Readers on CIBIL

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 a bank 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. CIBIL do not keep any track of the loan rejections by any banker on their credit report.

  

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. However if he/she has stands guarantor for the said loan then it will appear in his/ser CIBIL report. Whether loan track of any loan appears in the CIBIL report if the customer stands guarantor for the said loan Yes, The track of the loan will appear in the Guarantor’s Credit report & a bad track record of that loan may arrive into a rejection of loan by banker. If they found that the said loan may becomes future liability of the guarantor.

 What is Credit Score :

 The credit history & repayment behavior of a customer is translated into a number developed by CIBIL, called 'credit score' ranging from 300-900. 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 unfavorable, then you can ask your bank for a copy of your CIBIL report or purchase the same from CIBIL & if any error is there apply to CIBIL for correction of the same otherwise try to improve your credit history.