CIBIL-Transunion Tracking 525 Million Loan Accounts, Rise of Retail Lending

cibil-tracking-loan-accounts-indiaCIBIL Transunion is India’s Largest credit bureau with with data on 200mn Indian Citizens and 525mn loan accounts in its big data repository. The CIBIL management shared insights on the Rise of Retail Borrowing and Lending.

The strong trend in retail loan growth is aided by healthy growth in new account additions for both private players and NBFCs thus pointing to healthy granularity of the underlying retail loan growth. Even in microfinance space the underwriting trend is good with usage of TransUnion CIBIL/Aadhar helping minimize cases of duplicate lending

Despite steady y-o-y growth in retail segment, the underwriting trend remains good and there seems Read the rest of this entry »

Understand The Interest Free Period On Your Credit Card?

Interest Free Period On Your Credit CardThey say “Necessity is the mother of all inventions”. Credit Cards were born out of the need to provide an alternative to cash. Almost half a century back, when credit cards were introduced, they became an instant hit. Till date, people love to use their “plastic money” for they are universally accepted, quick, easy and relatively safe, help you keep a record of your purchases through monthly statements, great for bill payments and provide a host of other benefits through their loyalty points programs.

Let’s step in to the wonderful world of credit and learn on how to use credit cards to our advantage by Read the rest of this entry »

How Banks Evaluate CIBIL Score and Approve Home Loan Applications ?

CIBIL Loan ApprovalsMany of our readers have written to us to know How Banks Process and Approve Home / Car Loans ? They further have apprehensions that their Loan Applications were turned down despite having good Credit Report and CIBIL Score greater than 800. How do we account for such a case ?

When you apply for a Housing Loan, the following steps are performed by the Lending Bank / Financial Institution.

  1. Collect all necessary Documentation where Income Proof like Salary Slip, IT Returns are of importance to our discussion.
  2.  Collect necessary Processing Fees / Debit to your Account
  3.  Pull a Fresh CIBIL / Experian Credit Report and Read the rest of this entry »

Experian India Catching Up with CIBIL on Customers

Experian IndiaExperian is one of the four credit bureau license holders in India – CIBIL, CRIF Highmark and Equifax being others. In the global pecking order, Experian is 2X Equifax and 4X Transunion globally. In India TransUnion (CIBIL) has a larger presence.

In India, there are two entities, Experian Services India – 100% sub, decision analytics, marketing services (CheetahMail – world’s largest email marketing platform), business information (international reports).

Experian India: (1) 210 mn+ customers (2) 600 mn + address (3) 150 mn+ mn name variations; 60 mn+ identity variations. Credit accounts: (1) 380 mn+ current credit accounts; roughly 2 lines of Read the rest of this entry »

Can Secured Credit Card Help in Building your CIBIL Score?

Credit SudhaarAuthor: This article is contributed by Arun Ramamurthy, Director – CreditSudhaar

It’s funny, isn’t it, when we ask for money from established institutions and they require us to prove that we already have enough or the potential to repay them? Unfortunately for us, every lender needs a guarantee. Credit institutions exist to make our lives easier, but without the certainty that they can make business at the same time, they would cease to exist, too. We’d rather have regulated financial institutions and comply with the financial discipline that is required than fall on hard times Read the rest of this entry »

Why Credit Cards Still Offer Promise Despite Modi’s Digital Hype ?

Credit Cards vs Digital WalletsIn an era of Modi Government’s Digital India, new companies are unable to offer any new service but are looking to make it simpler and importantly, more relevant for consumers as the broad perception is that banking is a relatively complex business and the user experience/interface is far from satisfactory. Banks are defending their business as they have better data of their consumer, brand or customer trust and a large distribution network.

Digital acceptance of payment is not too high as >90% of transactions still move by cash. The extinction of the credit card business is unlikely in the medium term. The value proposition of the card would still be appealing to the consumer, especially Read the rest of this entry »