cibil-transunion

Want Car Loan ? Have Good Credit Score – Bankers Relying on CIBIL Report

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Car Loans - CIBIL Inquiry IndiaAuto Loans in India are on rise in the past 3 years and the demand is especially coming from smaller cities. After the 2008 Crisis, Banks have tightened their lending norms towards unsecured loans – Credit Cards & Personal Loans and even for Auto Loans they are increasingly relying on Credit Reports ans Scores from all the Three bureaus – CIBIL-Transunion, Experian and Equifax.

Approximately 20% of the inquiries in the last few years have been for new Auto Loans at CIBIL. Delhi NCR alone contributes 35% of the Inquiries in

Read moreWant Car Loan ? Have Good Credit Score – Bankers Relying on CIBIL Report

Regulatory Support for CIBIL / Experian and How CIBIL Helped Shape Retail Assets of Banks ?

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One should not hesitate to extend credit when it is due, yes we are talking about the Government of India and RBI which needs to be given its due share of credit who were instrumental in pushing banks to give more data to CIBIL and keep cleaning the data time and again. The Credit Information Companies Act passed in 2005 has made it mandatory for banks to check with any one credit bureau for any loan application they receive.

Earlier data used to be given on a quarterly basis by PSU banks whereas now banks give data on a monthly basis. So the frequency has increased. Secondly, the regulators have allowed the bureau to capture even positive data i.e. even well performing customers/records. There are many countries where law allows

Read moreRegulatory Support for CIBIL / Experian and How CIBIL Helped Shape Retail Assets of Banks ?

How is CIBIL Transuinion Credit Score Calculated for Indian Consumers ?

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CIBIL is the Largest Credit Bureau in India as on date. In association with Transunion, they’ve been providing CIBIL Transunion Scores to consumers directly since Q2, 2012. Since 2008-09, CIBIL Scores were provided only to financial institutions to help evaluate the consumer. Many of you asked us – How CIBIL Score is Calculated and the Methodology for the same? [We had to touch base with several leading Banks, CIBIL and Institutional Finance experts to answer your question]

If you don’t know what a CIBIL Transunion Score is, kindly read the same here.

How is CIBIL Transunion Score Calculated ?
There are various factors which influence the score such as payment history, outstanding debt, length of credit history, number and types of loan accounts, utilization, applications for new credit etc. However, it is important to note that each member i.e. Banks, NBFCs etc (that chooses to use the CIBIL Score) has

Read moreHow is CIBIL Transuinion Credit Score Calculated for Indian Consumers ?

What is CIBIL Transunion Score ? Explained

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Over the past few years, CIBIL has substantially increased its member base as well as borrower base. The members are banks, NBFCs and housing finance companies who provide borrower data to CIBIL. CIBIL now has 800 members with a database of 135m borrowers and 230 individual consumer loan accounts [20% of Indian Population] We’d like to explain in-depth about what CIBIL Transunion Score is and how is it calculated.

What is CIBIL Transunion Score ?
CIBIL score is an objective numeric summary of the credit report generated on an individual. It takes a “snapshot” of a consumer’s CIR (Credit information report) and with the use of advanced analytics moulds the information into a 3 digit number representing the probability that a consumer will default on a credit facility over the next 12 months. The possible score ranges between 300-900.

Sample CIBIL Score is as Shown in the Report Below

Read moreWhat is CIBIL Transunion Score ? Explained

What Type of Data Repositories CIBIL Collects? Ranging from Individual to Frauds

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CIBIL Transunion is the leading Credit Bureau of India with with the largest number of credit information records. RBI the Indian Financial System regulator has mandated every Financial Institution including Banks in India to submit Lending Data to atleast one Credit Bureau / Information company. Over 800 FIs upload data about Borrowers on a monthly basis to CIBIL.

We’ll see what kind of Data Repository CIBIL is Maintaining and the Definition / Meaning of each of these terms,

Individual Consumer Database CIBIL has Information on 135mn Indian / NRI individuals or

Read moreWhat Type of Data Repositories CIBIL Collects? Ranging from Individual to Frauds