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 unfavourable CIBIL report / score?

If the bank is reject­ing a loan on the grounds of the CIBIL report being unfavourable, 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.