What is CIBIL?

CIBIL is noth­ing but the mir­ror of your ear­li­er loan cred­it card repay­ment track. It stands for Cred­it Infor­ma­tion Bureau (India) Ltd. CIBIL gives A Cred­it Infor­ma­tion Report (CIR) which is a fac­tu­al record of a bor­row­er’s cred­it pay­ment his­to­ry com­piled from infor­ma­tion received from dif­fer­ent cred­it grantors. Its pur­pose is to help cred­it grantors make informed lend­ing deci­sions. An indi­vid­u­al’s cred­it report pro­vides a cred­it insti­tu­tion with an indi­ca­tion of the “prob­a­bil­i­ty of default” based on his/her cred­it his­to­ry. It helps in esti­mat­ing the like­li­hood of repay­ment of loan based on the indi­vid­u­al’s past pat­tern of cred­it usage and loan repay­ment behav­iors. The more clear & good CIBIL report attracts bor­row­er con­fi­dence about his future repay­ments & the indi­vid­u­al’s abil­i­ty to repay the loan and hence, the bet­ter the chances of his/her appli­ca­tion get­ting approved quicker.

What it con­tains in its report: CIBIL only reports loan and cred­it-card infor­ma­tion such as repay­ment track, loan type, amount out­stand­ing, loan amount dis­bursed, var­i­ous dates, writer off/settled 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. 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

CIBIL is the repos­i­to­ry of infor­ma­tion which is pooled in from all Banks and lend­ing Insti­tu­tions oper­at­ing in India.   CIBIL  have a data­base size of over 17 crore  con­sumer records and over 65 lacs com­pa­ny records con­tributed by our over 500 Members.

The Cred­it Infor­ma­tion Com­pa­nies (Reg­u­la­tion) Act, 2005, and var­i­ous Rules and Reg­u­la­tions issued by Reserve Bank of India has empow­ered CIBIL or (Cred­it Infor­ma­tion Bureau (India) Ltd to col­lect the data from var­i­ous types of cred­it grantors (i.e. lenders). and then share the same with­in the group.   The leg­is­la­tion has enabled banks to sub­mit data to CIBIL with­out obtain­ing bor­row­er con­sent This has enabled CIBIL to tracks repay­ment his­to­ry of bank cus­tomers loans,  cred­it cards and fur­ther bank­ing  finances.

So from next time before default­ing in any loan or cred­it card repay­ment be aware that CIBIL keeps an eye on your repay­ment of loan & your default may attract non avail­abil­i­ty of loan in future from oth­er lend­ing insti­tu­tions as well.