CIBIL is India’s First Consumer Credit Bureau, incorporated in the year 2000 and official business began only in 2004. As per the Credit Bureau Finance Act, All Banks/NBFC/Financial institutions are mandated to submit monthly data on retail loans to any one credit bureau and CIBIL is the Largest in India today.
CIBIL’s Coverage of Consumer Data
CIBIL repository has data from over 800 Financial Institutions covering 135 Million Individuals with 230 Million Accounts being tracked. There is a general perception that CIBIL only covers Metro Areas, however data suggests that only 35% of CIBIL’s retail records are from Top 20 Indian cities, with 65% from smaller cities and towns. CIBIL not only gets data on NPAs but also repayment details of every retail loan outstanding and hence, they can generate reports on early stress indicators like 30/60 day overdue as well. Credit discipline continues to be maintained with miniscule lending to individuals with low credit/CIBIL score
How CIBIL Matters to Consumers / Citizens ?
Most retail loan applications [Car Loan, Home / Personal Loan, Credit Cards, etc] are referred to CIBIL and the hit rate (probability of finding a CIBIL record) on aggregate basis is ~70-75%, with credit cards having a hit rate of +90% and 2-wheelers of <50%. It is a mandatory to pull a CIBIL report of borrower in modern banks such as HDFC and Kotak which is why they have very low NPAs despite huge retail lending. CIBIL does get early warning signs of stress through 30/60 day overdue data. Currently CIBIL is not seeing any inching up in 30-60 day past due buckets in any retail asset category.
CIBIL for sure is making sure all India will be CIBILised (Civilised).