Credit Information Bureau (India) Limited, CIBIL, is India’s first credit information company. It creates immense value for financial institutions by providing objective, data and tools to help them manage risk, and devise appropriate lending strategies thus reducing cost and maximizing portfolio profitability. CIBIL benefits both credit grantors and consumers by collecting, analyzing, 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. It also provides services and education to consumers to help them better manage their finances.
In May 2006, CIBIL commenced commercial credit bureau operations.
In November 2007, CIBIL TransUnion Score is introduced to banks.
In April 2011, the score is made available to individuals.
“CIBIL today is one the fastest growing credit bureaus globally as it has established its leadership in India’s high potential credit sector within a decade of operations”, said Mr. Satish Pillai- CIBIL’s new Managing Director and CEO. “Over the years, CIBIL has achieved several milestones of growth and is the partner of choice on credit risk management for banks and credit institutions in India.
CIBIL, India’s largest credit information bureau, maintains credit information on more than 406 million consumer accounts and 22 million business accounts and has a membership base of over 1400 banks and credit institutions. Credit institutions check an applicant’s CIBIL report and CIBIL-TransUnion Score before making lending decisions. Today, banks and credit institutions can lend to consumers confidently based on the information received from CIBIL on the consumer’s past credit behavior as well as anticipate likelihood of default based on the CIBIL-TransUnion Score. CIBIL has also benefitted the consumers by helping make access to credit opportunities faster and easier while driving credit penetration. Anyone who has 750 or more CIBIL TransUnion score can get loan from banks easily, though each bank has its own policy.
Impact of CIBIL
Home Loans and credit card accounts have witnessed a positive trend in the recent past. The credit demand too has witnessed significant growth during the past five years.
CIBIL Senior Vice-President-Customer Relations, Harshala Chandorkar said over 3.9 lakh home loans were disbursed between April and June, 2015.
The delinquency of repayments (90 days and more) had come down from 1.06 per cent by end of 2010, to 0.57 per cent by this year’s first quarter, she said, adding that home loan growth was driven by higher demand in Mumbai, Pune, Bengaluru and New Delhi.
As for credit cards, 10.8 lakh new credit card accounts were opened this quarter, against 8 lakh accounts in the first quarter of the last financial year. Delinquency on credit card payments too had come down from 3.27 per cent at the end of 2010, to 1.06 per cent this quarter.
The maximum number of credit card applications came from Mumbai, New Delhi and Bengaluru, she pointed out. The growth, she said was driven by the increased growth by increased availability of credit information.
Quoting from CIBIL’s latest data trends report, Ms. Harshala said that 79 per cent of retail loans were approved for individuals whose CIBIL TransUnion rating were beyond 750. She said the number of disputes every month, arising out of incorrect information furnished to the CIBIL by banks were in hundreds, while the CIBIL Reports and TransUnion Scores were being given in crores.
The credit information support received from CIBIL has made lending objective, information oriented and therefore much reliable and less risk prone. On the other side consumers with a good CIBIL TransUnion Score have benefits for accessing credit quickly and conveniently.