Page 33 - Banking Finance September 2019
P. 33
COVER STORY
IMPORTANCE
OF CREDIT
INFORMATION
REPORTS
Abstract
The Credit Information report has become a necessary document for Banks and Financing Institutions as it provides an
insight about a prospective borrower and accordingly it helps in taking credit decision. An Excellent Credit Score can help
in many ways to an individual. Most of the Banks in India generally consider CIBIL score of 700 and above as a good credit
score. Credit Score more than 750 may be considered as an ideal score as it provides you power to negotiate good terms
on your loan while score below 650 would attract a higher interest rate. A strong credit report that will enable you and
your spouse to get the credit you want while a poor credit report may affect a wonderful moment in life.
Credit Information Bureau (India) Limited (CIBIL), now that all Credit Institutions (CIs) in the country shall become
known as TransUnion CIBIL Limited, is India's first Credit members of the undernoted Credit Information Companies
Information Company (CIC) founded in the year 2000 with (CICs) and submit data to them at a stipulated periodicity.
the concept of credit information sharing in India. The Reserve Bank of India has accorded license to following
four credit rating bureaus:
In January 2015, the Reserve Bank of India has mandated Y TransUnion CIBIL Limited
Y CRIF High Mark Credit Information Services Pvt. Ltd.
About the author Y Equifax Credit Information Services Pvt. Ltd. (ECISPL)
Sunil Kumar Y Experian Credit Information Company of India Ltd.
Chief Manager (Research) (ECICIPL)
State Bank Institute of Consumer Banking
Hyderabad The CICs and CIs shall keep the credit information collected/
BANKING FINANCE | SEPTEMBER | 2019 | 33
