CAIT Articles

10 Things Every Trader Must Know About CIBIL

A healthy CIBIL Report and a high CIBIL TransUnion Score can be your key to faster and hassle free access to loans and credit cards. Therefore it is must to know the following ten facts about CIBIL:

1.     CIBIL is India’s pioneer Credit Information Company that collects credit information pertaining to retail and commercial borrowers from banks and credit institutions which are its members.

2.     CIBIL collates this information into credit reports and provides them to banks and credit institutions to help them evaluate risk while lending to an individual or company.

3.     All banks and credit institutions operating in India are members of CIBIL and mandatorily check the loan applicants CIBIL Report and score before granting loans.

4.     An individual’s CIBIL report and CIBIL TransUnion Score, other than his/her income, is the single most important tool used by a lender to evaluate application for any loan or credit card.

5.     An individual’s CIBIL Report is a month on month record of an individual’s loan-related EMI (home loans, personal loans, automobile loans and so on), credit card or overdraft payments.

6.     The CIBIL TransUnion Score is a 3 digit numeric summary of an individual’s credit history that ranges from 300 to 900 points. The closer the score to 900 the better are the chances of the individual’s loan application getting approved.

7.     While each bank will have its own credit scoring cut-off based on the credit sanctioning policies, it has been observed that most banks are lending to consumers with a CIBIL TransUnion Score of 750 and above.

8.     CIBIL Commercial Credit Report (CCR) is a month on month record of a company’s debt related exposure and payments. The CCR captures cash credit, overdraft facilities, loans of all maturities, bank guarantees, letters of credit, packing credit, deferred payment obligations, forward contracts and any other debt exposure that a company has incurred. This information is captured for sole proprietors, partnership firms, limited and public limited companies to name a few.

9.     You can access your own CIBIL Report and CIBIL TransUnion Score and your Company Credit Report (CCR) on CIBIL’s website.

10.  You can also raise a dispute on CIBIL’s website in case you find any discrepancies in your credit report.