CIBIL

Indian Private Banks Rely on CIBIL Data Repositories for Lending / Monitoring

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Private BanksIndian Private banks have a deeper usage of data than PSU banks. Some PSUs banks are big users of the credit bureau and there are others which are still learning to integrate the systems. The critical issue faced by PSU banks is digitalisation of documents and providing the same to CIBIL.

To increase the scope and to have early warning systems in place, CIBIL is working towards including Self Help Groups / Micro-finance Institutions to give information, as they are generally the first

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Retail Credit Quality Firm + Stress in SME – CIBIL

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Mr. Satish Pillai, Chief Operating Officer, CIBIL interacted with Analysts and here is an excerpt from the same.

Retail Consumer / Citizens Loan / Credit Status
The Retail asset quality has been intact over the past one‐two years in vintage portfolios across all retail products (barring auto loans) and delinquencies are at low levels. Within auto loans, delinquencies are higher than normal in some segments for a few banks, but across‐the‐board deterioration is absent.

Why is the Retail Asset Quality Strong ?
Banks have changed sourcing strategy shifting from self employed

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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 ?

Can CIBIL Data be used for Marketing? Does CIBIL Track Telephone / Utility Bill Payment, Insurance Records ?

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Many readers have posed Authentic Questions to Us being the leading publication on Credit Bureau and Card industry in India. One of the readers asked me – Can CIBIL data be used for marketing ? Does CIBIL produce some information reports ?

By law [Credit Information Companies Act, 2005 2006] neither CIBIL nor any other Credit Bureau operating in India cannot use their data repository for soliciting business or for marketing purposes.

However, CIBIL, based on its significant database, has been helping banks profile customers in several new geographies. For eg, if a bank wants to do retail business in a certain region, CIBIL can generate

Read moreCan CIBIL Data be used for Marketing? Does CIBIL Track Telephone / Utility Bill Payment, Insurance Records ?

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

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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

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