Credit Information Bureau (India) Limited is India's first Credit Information Company (CIC) founded in August 2000. CIBIL collects and maintains records of an individual's payments pertaining to loans and credit cards. These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to credit institutions in order to help evaluate and approve loan applications. CIBIL was created to play a critical role in India's financial system, helping loan providers manage their business and helping consumers secure credit quicker and on better terms.
History and origin
Credit Information Bureau (India) Limited or CIBIL is a Credit Information Company (CIC) founded in August 2000.
Objectives
For credit grantors to gain a complete picture of the payment history of a credit applicant, they must be able to gain access to the applicant's complete credit record that may be spread over different institutions. CIBIL collects commercial and consumer credit-related data and collates such data to create and distribute credit reports to its Members which are credit institutions and banks in India. CIBIL's over 900 strong member base includes all leading public & private sector banks, financial institutions, non-banking financial companies and housing finance companies.
CIBIL's products, especially the Credit Information Report (CIR) and CIBIL TransUnion Score are very important in the loan approval process. Once the loan provider has decided which set of loan applicants to evaluate, it analyzes the CIR / Score in order to determine the applicant's eligibility. Eligibility basically means the applicants ability to take additional debt and repay additional outflows given their current commitments. Post completion of these first 2 steps the loan provider will request for the applicants income proof and other relevant documents in order to finally sanction the loan.
The CIR and Credit Score not only help loan providers identify consumers who are likely to be able to pay back their loans, but also help them to do this more quickly and economically. This translates into faster loan approvals for consumers. An individual with a credit score above 750 has better bargaining power with the lenders, since he is perceived as a responsible borrower. Since consumers can now access their Credit Scores and CIRs directly from CIBIL at the cost of INR 500, they can see for themselves how they are perceived by the lenders before applying for a loan. Hence, CIBIL empowers both loan providers and individuals to see their financial and credit history more clearly and hence, take better and more informed decisions.
Divisions
CIBIL houses credit on over 220 million trades across individuals and businesses, organised into two divisions : Consumer Bureau and Commercial Bureau.
The Consumer Bureau was launched in 2004 with 4 million records, and now maintains more than 260 million records. The Commercial Bureau was launched in 2006 with 0.7 million records, and now maintains more than 12 million records.
Security standards
CIBIL is ISO 27001:2005 certified- the most recognized security standard in the world. CIBIL is one of the 1000 companies in the world, which have achieved ISO 27001 certification, and one of the first few in India.
Technical partners
- TransUnion International- a leading global credit bureau with presence in over 30 countries.
- Dun and Bradstreet - a leading global provider of credit information and insights on businesses.
Entities including TransUnion, leading banks and financial institutions hold a stake in CIBIL. The details are as follows :
- TransUnion International Inc 55%
- ICICI Bank Ltd 10%
- State Bank of India 07%
- Indian Overseas Bank 5%
- The Hongkong and Shanghai Banking Corporation 5%
- Union Bank of India 5%
- Bank of India 5%
- Bank of Baroda 5%
- Allahabad Bank 3%
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