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.

How CIBIL get & share Credit information of consumers

How CIBIL get & share Credit information of consumers

CIBIL collects credit information of the customers of each member financial institutes & get it compiled by its own. CIBIL share the credit report of consumers with in its member group only. The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empowered CIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit grantors (i.e. lenders). and then share the same within the group.   The legislation has enabled banks to submit data to CIBIL without obtaining borrower consent. This has enabled CIBIL to tracks repayment history of bank customers loans, credit cards and further banking finances. Data sharing is based on the Principle of Reciprocity, which means that only Members who have submitted all their credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence.

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 company and consumer credit-related data and collates such data to create and distribute credit reports to Members.

Thus, we can say that CIBIL collects commercial and consumer credit-related data and collates such data to create and distribute credit reports to Members.   (A Credit Information Report (CIR) is a factual record of a borrower's credit payment history compiled from information received from different credit grantors

Member banks contribute to CIBIL on a monthly basis data of all their customers who maintain a loan/credit-card account with them. You may not get your payment updated with CIBIL immediately after your payment since its update their data on the basis of monthly report of members.

Can a customer’s name be deleted from CIBIL?

No, since bankers share credit data monthly with the CIBIL so, a customer's name cannot be removed from CIBIL's database.

How to Own your CIBIL Report

How to Own your CIBIL Report

There is a procedure for purchase of one's own CIBIL report so that before you apply for loan, you are aware of the same & you may get the errors rectified, if there any, before you’re your lender seen the wrong credit report of yours. .  You can visit the following link to buy the report from CIBIL https://www.cibil.com/online/credit-score-check.do

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 & is now available to consumers for Rs 470.

The very purpose of sharing the CIBIL report with consumers is to help them to assess their own 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 their loan based on the individual's past pattern of credit usage and loan repayment behavior.    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 favorably it is viewed by credit institutions. However, every institution has its own benchmark of what constitutes a good credit score & sometimes they generate CIBIL without score which gives just the track record & they used to analyse the same at their own. CIBIL does not recommend any cut-off score loan application eligibility.

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.

What Should One Do, if there is a Mistake in the CIBIL Report

What Should One Do, if there is a Mistake in the CIBIL Report

Typically, one checks credit report when one's loan gets rejected and the loan provider tells that it is because of some information on credit report.  Mistakes on a credit report can be easily corrected with the CIBIL’s help. All you need to do is:

a) Purchase your CIBIL credit report

b) Identify the erroneous information

c) Provide name, address, date of birth, a Control Number and the nature of the error on the credit bureau’s website.

The Control Number is a unique 9-digit number found on the top right hand side of your CIBIL Credit Information Report and is generated every time a credit report is generated. It is very important to provide this number to the bureau, as it helps identify the CIBIL credit report on which you would like to ‘dispute’ information.

Normally following types of errors are found in ones CIBIL Report & which can be easily corrected from by taking up the matter with CIBIL

Personal information’s such as Name, Date of Birth Gender, Income Tax ID, Passport Number, Voter's ID, Telephone Numbers, Address, State, PIN

Account Details (Loan/Credit Card) Account/ Loan Type, Account Status, Ownership Type, Date of Last Payment, Date Opened, Date Closed, Sanctioned Amount/ High Credit, Current Balance, Amount Overdue, DPD/ Asset Classification

Ownership some accounts showing in your CIBIL report may not pertain to you & you can raise an objection on ownership of the same.

Duplicate Accounts a loan/credit card may be showing twice/thrice in your CIBIL

If you find any of the above error in your CIBIL report then follow the link & get it corrected from CIBIL within a period of 30 days.

https://www.cibil.com/online/ManageDisputeDetailsAction.do?action=showDisputePage

What is CIBIL?

What is CIBIL?

CIBIL is nothing but the mirror of your earlier loan credit card repayment track. It stands for Credit Information Bureau (India) Ltd. CIBIL gives A Credit Information Report (CIR) which 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. An individual's credit report 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 behaviors. The more clear & good CIBIL report attracts borrower confidence about his future repayments & the individual's ability to repay the loan and hence, the better the chances of his/her application getting approved quicker.

What it contains in its report: CIBIL only reports loan and credit-card information such as repayment track, loan type, amount outstanding, loan amount disbursed, various dates, writer off/settled 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. 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.

CIBIL is the repository of information which is pooled in from all Banks and lending Institutions operating in India.   CIBIL  have a database size of over 17 crore  consumer records and over 65 lacs company records contributed by our over 500 Members.    

The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empowered CIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit grantors (i.e. lenders). and then share the same within the group.   The legislation has enabled banks to submit data to CIBIL without obtaining borrower consent This has enabled CIBIL to tracks repayment history of bank customers loans,  credit cards and further banking  finances. 

So from next time before defaulting in any loan or credit card repayment be aware that CIBIL keeps an eye on your repayment of loan & your default may attract non availability of loan in future from other lending institutions as well.