CIBIL

TransUnion CIBIL Limited
Credit Information Company
Founded Mumbai, Maharashtra, India (August 2000 (2000-08))
Headquarters Hoechst House, 193 Backbay Reclamation, Nariman Point, Mumbai, Maharashtra, India
Area served
 India
Key people
 Satish Pillai (Managing Director)[1][2]
M.V.Nair (Chairman)[3]
Services Research, Risk and Policy Advisory
Website www.cibil.com

TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited) is India’s first Credit Information Company (CIC) founded in August 2000. CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to credit institutions in order to help evaluate and approve loan applications. CIBIL was created to play a critical role in India’s financial system, helping loan providers manage their business.

History and origin

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 commercial and consumer credit-related data and collates such data to create and distribute credit reports to its Members which are credit institutions and banks in India. CIBIL’s over 900 strong member base includes all leading public & private sector banks, financial institutions, non-banking financial companies and housing finance companies.[4]

The Credit Information Report (CIR) and CIBIL TransUnion Score are used in the loan approval process. Once the loan provider has decided which set of loan applicants to evaluate, it analyzes the CIR / Score in order to determine the applicant’s eligibility.[5] Eligibility basically means the applicants ability to take additional debt and repay additional outflows given their current commitments. Post completion of these first 2 steps the loan provider will request for the applicants income proof and other relevant documents in order to finally sanction the loan.

The CIR and Credit Score help loan providers identify consumers who are likely to be able to pay back their loans. An individual with a credit score above 750 has better bargaining power with the lenders, since he is perceived as a responsible borrower.[6] Since consumers can now access their Credit Scores and CIRs directly from CIBIL at the cost of INR 500,[7] they can see for themselves how they are perceived by the lenders before applying for a loan. Hence, CIBIL empowers both loan providers and individuals to see their financial and credit history more clearly and hence, take better and more informed decisions.

Divisions

CIBIL houses credit on over 220 million trades across individuals and businesses, organised into two divisions : Consumer Bureau, Commercial Bureau and MFI Bureau.

The Consumer Bureau was launched in 2004 with 4 million records, and now maintains more than 260 million records. The Commercial Bureau was launched in 2006 with 0.7 million records, and now maintains more than 12 million records.[8]

Technical partners

Shareholders

Entities including TransUnion, leading banks and financial institutions hold a stake in CIBIL.[9] The total shareholders are:

References

  1. ↑ "Satish Pillai, new MD & CEO of CIBIL". Business Line. 9 July 2015. Retrieved 2 August 2015.
  2. ↑ "Cibil to launch mortgage default database". Hindustan Times. 2010-07-08. Retrieved 2010-12-08.
  3. ↑ "SBI, HDFC dilute stake in CIBIL". The Hindu Business Line. 2005-05-17. Retrieved 2010-12-08.
  4. ↑ "How Cibil score check chances of landing a job". freescoreindia. Retrieved 26 December 2015.
  5. ↑ "How to Resolve Your Credit Report Disputes". Paisabazaar.com. Retrieved 16 September 2015.
  6. ↑ "Important of Cibil Credit Score". Credit Vidya. 2012-05-17. Retrieved 2010-12-08.
  7. ↑ "How to get Cibil Score Online". CreditVidya. 2012-05-17. Retrieved 2010-12-08.
  8. ↑ "Money Indices". Money Indices. Retrieved 26 December 2015.
  9. ↑ https://www.cibil.com/shareholding-pattern


External links

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