Set up in the year 2000, CIBIL, Credit Information Bureau (India) Limited or TransUnion CIBIL is the oldest and highly-reliable Credit Information Company in India which offers credit-related services to its member organizations. It has been gathering and maintaining credit-related information of Indian people, regularly supplied by various banks and nonbanking financial companies in the country.
CIBIL generates individual-level credit report and credit score based on all the financial information gathered from these lending establishments. On the other hand, the lenders make use of this CIBIL credit report to analyze the creditworthiness of loan/credit applicants, to ascertain if they should be extended the said loan/credit facility or not.
As a result, CIBIL plays a very important role in the financial ecosystem of India. Going by the latest records, CIBIL has 2600 members on board, comprising of several leading private and public sector banking establishments, nonbanking companies, housing finance companies and other financial institutions.
The credit score calculated by CIBIL is popularly referred to as CIBIL score, which constitutes an important factor for lenders while they’re reviewing the loan/credit applications. It’s a 3 digit numeric figure that summarizes an individual’s credit history, and is calculated based on details found in the ‘Enquiries’ and ‘Accounts’ sections of the CIBIL report, factoring in all kinds of financial information including that of credit cards, loan accounts, payment status and outstanding amounts. This score is a reflection of a person’s credit worthiness, providing a fair idea about his/her repayment and borrowing habits, as reported by the lenders. It can range from 300 to 900. The higher this score is, the better will be the person’s chances of getting his/her loan approved. Almost 79% of all the loan applications in India are sanctioned for consumers with CIBIL score greater than 750.