FAQ: Frequently Asked Questions about CIBIL
CIBIL, an acronym of Credit Information Bureau India Limited, is India’s very first and the only credit information bureau. It puts together and distributes information about the credit accounts of a borrower to all its members. The information is gathered and distributed in form of a credit information report containing the details of credit facilities that an individual or the firm has availed.
Who are its members?
All leading Financial Institutions, Banks, Credit Card Companies, Non-Banking Financial Companies, State Financial Corporations, and Housing Finance Companies are CIBIL’s members.
What is CIBIL’s primary function?
CIBIL’s main function is collecting information on a person’s or a firm’s credit accounts and providing this information to each of its member institution.
On which sections does CIBIL provide credit reports?
The bureau provides information on both consumer and commercial segments. While in the consumer department each and every credit facility used by an individual is covered, the commercial segment includes all the facilities availed by a private limited company, proprietorship company, and partnership company.
What is a credit report?
A credit report is a documented record of someone’s credit history. Details regarding the loans taken by the borrower and other credit facilities availed are present in it. The credit report provided by CIBIL helps credit grantors make an informed lending decision, quickly and easily, about a supplicant.
How does CIBIL obtain the information?
The primary source of information for CIBIL is its members. After gathering information about a borrower from its members, CIBIL, if possible, usually supplements it with information available in the public domain to create a more comprehensive snapshot of that borrower’s financial history.
What security measures CIBIL has taken to ensure data security?
CIBIL maintains that ensuring data security is of paramount importance to it, and the security measures in place are in line with global ‘best practices’ and strict risk management standards. They are also open to frequent audits by international audits.
To ensure information security, CIBIL claims to use the latest technology. Some key aspects of its security module are as follows:
- Information on ‘need to know’ basis only. For instance, only employees engaged in the work of system as well as database administration have access to the Data Centre.
- Data Centre equipped with the state-of-the-art monitoring technology. The Data Centre uses a biometric access system and access control devices, and surveillance cameras are installed in strategic locations.
- Firewall, Intrusion Detection, and Vulnerability Assessment System to secure the network. The network is secured against external threats using a robust perimeter security solution.
- Technology-advanced smoke detection system and FM200-based Fire Suppression System. Helps in early detection of fire and limiting the damage caused by it.
- 128-bit SSL encryption used for Web-based transactions including FTP. Ensures data security during transmission.
- Use of Cryptographic solutions when information shared or received via physical media, like a CD
- The credit report contains what types of information about a borrower?
The credit report contains the following information:
- Basic Information, like name and address.
- Details of each and every credit facility taken by a borrower
- Amount overdue
- Past payment history
- Number of inquires other members have made on a borrower
- Suit-filled status
For individuals the following information is present:
- Passport ID
- Date of birth
- Voters ID
- Identification numbers
For non-individuals the following information is present:
- Registration number
- D-U-N-S number
- Legal Constitution
What kind of information is excluded?
The credit report does not contain the following information:
- Details of investments
- Income details
- Value of the asset(s) that are mortgaged
- Details about a borrower’s assets
- Amount(s) that are deposited with the bank
Who all can access the credit report?
Only member institutions that have shared their complete data with the bureau can access the report.
Can a person view his or her credit report?
Yes, it can be purchased direct from CIBIL.
Does the credit report indicates if a person should be granted a loan or not?
No, it doesn’t. The credit report serves only purpose: to provide factual credit information about a borrower. It does only that and nothing more.
How does a lender interprets the information in a credit report is up to that lender. CIBIL does not grant a loan to a borrower, nor does it deny a loan.
If one lender rejects a loan application does that mean others will reject it too?
No, not necessarily. The credit report provides credit information about you. It is possible that based on the information given, one lender may reject your loan application while another may take a favorable view of your situation.
Do rejected credit applications show up in the credit report?
No, they don’t. This is so because financial institutions do not disclose this information to CIBIL.
How can someone correct information listed on the credit report?
You need to contact the institution from whom you’ve obtained a copy of your credit report with relevant documents to support your request for rectification of a piece of information currently present in your credit report. Your financial institution will correct the necessary information and inform CIBIL, who will then update your credit report.