What Is CIBIL? India’s Top Credit Bureau

 

What exactly is CIBIL?

CIBIL is an acronym of Credit Investigation Bureau of India. It is India’s first and, right now, only credit information bureau. It contains a detailed credit history of both consumer and commercial borrowers for financial institutions to you in determining loan eligibility.

 What is CIR?

CIR is an acronym of Credit Information Report. It contains credit history of an individual (that is, the loans he has taken and his payment history).

The purpose of CIR is to help lenders make an informed decision about whether to give or not give a credit to an individual. Useful as CIR is for lenders, it is quite beneficial to individuals to. It brings to their notice their credit history and how favorably a lender will view the loan application. It also shows them the areas that require attention if they want to improve their chances of availing a loan.

What are the 6 different sections in a CIBIL report?
  • CIBIL TransUnion Score

CIBIL TransUnion Score is a 3-digit number that provides a measure of a borrower’s credit worthiness. The credit score, ranging from 300 to 900, is derived from information listed in two sections of CIR: Accounts and Enquiries. The credit score plays an important role in the loan approval process, and closer you are to 900, the better are your chances of availing a loan.

Kindly note credit report and credit score, although frequently used interchangeably, are not the same thing. While the credit score lists a value that serves as a reference point to lenders evaluating your credit application, the report gives them complete information about the loans you’ve taken and your repayment history.

  • Personal Information

Personal details, like Name, Gender, DOB, and Identification Type, are listed in this section. CIBIL attains this data from your lender, so you need to cross-check it for accuracy.

  • Contact Information

Your contact details, such as your residential address, email address, telephone number, etc. are listed in this section. You must go through this section carefully to ensure there is no mistake.

  • Employment Information

Recent details about your income, occupation, and employment are mentioned in this section. The information regarding your income captured when you applied for the loan is listed here.

  • Account Information

The most vital section of your CIBIL Information Report, it lists all information related to your lending history and credit history, like the type of loan you’ve taken, the name of the institution from where you’ve taken the loan, the loan amount, loan opening as well as loan closing date, the interest rate, loan status, and payment history.

  • Enquiry Information

Names of the lenders who view your CIR to evaluate your loan application are mentioned here. Along with the name, the purpose of the enquiry, the amount of loan you’ve applied, and the enquiry date are listed here.

How can I access my CIBIL Report and Score?

Beginning in December 2016 every citizen is entitled to one free CIBIL Report per year directly from CIBIL. To understand and start the process to get your free report, you must go there. Accessing your CIBIL Score and report is just a click away. However, only the first report is free; if you need to check your credit during the year for a large purchase or healthy credit monitoring, you will need to pay a fee of Rs 470. Go to the CIBIL website, fill a request form and feed in your details, like your name, address, DOB, gender, etc. You will also need self-attested copies of address and identity proof.

You can pay online via net banking or a credit or debit or cash card. A unique registration ID as well as a transaction ID will be generated once payment is successfully processed. Next, you will be asked to provide answers to a few security questions and soft copies of the address and identity proof.

Once the application is authentication, your credit score and CIR will be sent you via email. In case the authentication fails, to get a copy of your score a CIR, you’ll need to mail the hard copy of your receipt of online payment and your identity and address proof to the CIBIL address:

Consumer Relations: Credit Information Bureau (India) Limited,
Hoechst House, 6th Floor, 193 Backbay Reclamation,
Nariman Point, Mumbai 400 021, India.
Tel.: 022 61404300, email: [email protected]

Those of you who don’t want to go online will have to do the following to get a copy of their CIBIL score and report:

  • Fill in the application form (first take a printout of it)
  • Make a demand draft of Rs 470
  • Attach copies of your address and identity proof
  • Mail everything to the above-mentioned CIBIL mailing address

Can I get A COMPLETELY Free CIBIL Score?

Yes. CreditSmart is proud to offer it’s users a completely free CIBIL score using our CIBIL score calculator. You need only to answer a few questions about your financial history and our custom algorithm will estimate your free credit score in minutes. Create an account with us free and begin the journey to better credit.

What Do The Terms On My CIBIL Report Mean? 

Along with your CIBIL report are many terms, abbreviations, and shorthand you need to be familar with while trying to make sense of your report. Here are the terms you’re likely to encounter on your CIBIL report:

Key Term Explanation
AC (Asset Classification)It is important to note that some banks report DPD (Days Past Due – please refer to the DPD description for more information) as per the Asset Classification norms EMPOWERING YOU defined by RBI. which are as follows:

DPD Denotes Explanation

STD Standard Payments are being made within 90 days. Any account

overdue by more than 90 days is classified a Non

-Performing Asset (NPA) by banks.
SMA Special Mention Special account created for reporting Standard account,

Account moving towards Sub -Standard
SUB Sub -Standard An account which has remained an NPA for up to 12

months
DBT Doubtful The account has remained a Sub -standard account for

a period of 12 months

LSS Loss An account where loss has been identified and remains

uncollectible

ACTUAL PAYMENT AMOUNTIs the amount you have paid to your lender if it is different from the EMI Amount? This may be more or less than the EMI Amount.
AMOUNT OVERDUEIndicates the total amount that has not been paid to the lender in a timely fashion (includes principal and interest amount).
CASH LIMITApplies to credit cards specifically. It is the amount of cash you are permitted to withdraw from your credit card.
CN (CONTROL NUMBER)This is your report number and is essential if you feel you need to raise a Dispute Request.
COLLATERALIs provided to a lender as security to protect the lender in the event you are unable to repay your loan. This may be property, shares, gold, etc.
CREDIT LIMITApplies to credit cards and overdraft facilities. It reflects the total amount of credit you have access to with regard that credit card or overdraft facility.
CURRENT BALANCEIs the amount you still owe on a particular credit facility? Lenders typically take 30-45 days after your payment is received to update this information with CIBIL
ENQUIRYEnquiries are added to your report when you apply for a loan or credit card and the lender decides to access your CIR. Details such as the name of the loan provider
size and type of loan are captured in this section. Please note that the date of the enquiry may differ from your actual application date because the
lender may access your CIR a day or more after you have applied.
HIGH CREDITApplies to credit cards and facilities. It reflects the highest amount ever billed (Including interest and fees) for that particular credit card or overdraft.
OWNERSHIPThis field tells the lender who is responsible for payments on that loan or credit card. There are 4 types of indicators that can appear on your CIR:
1. Single: You are solely responsible for making payments on the account.
2. Joint: You and someone else bear joint responsibility for payments on these accounts. This will also reflect on the other individual’s CIR
3. Authorized User: This is used for ‘add-on’ credit cards that you may have. While this reflects on your CIR, lenders know that you are not responsible for paying
dues on that particular account.
4. Guarantor: A guarantor pledges to repay a loan on behalf of a third party who has taken a loan. Hence, he provides a guarantee to the lender that he will honour
the obligation, in case the principal applicant is unable to do so.
REPAYMENT TENUREIs the term of your loan? This field is to be read with the “PAYMENT FREQUENCY” field in order to accurately understand the term of the loan. For example, 120 at a
monthly payment frequency would mean the term of the loan is 10 years.
SANCTIONED AMOUNTThis is the loan amount disbursed to you. Applies to account types other than credit cards and overdraft.
SETTLEMENT AMOUNTWhen an amount owed on a loan account is disputed, the individual and lender settle at some amount in between. It’s what the lender believes is owed and what the
individual believes he should pay. This is the amount the individual has agreed to pay. The rest of the amount (that the lender believes is owed) is written -off by the lender.
SUIT -FILED / WILFUL DEFAULTIn case the lender has filed a suit against you, there is specific reporting prescribed by the Reserve Bank of India (RBI). This is as follows:
1. No Suit Filed (or the field will be blank)2. Suit filed3. Wilful Default4. Suit filed (Wilful Default)
WRITTEN -OFF AMOUNT (PRINCIPAL)This field reflects the principal amount written -off by the lender. It follows that the difference between the total and principal written -off amounts is the interest
amount that has been written -off on this account.
WRITTEN -OFF AMOUNT (TOTAL)When a loan is written -off there is an interest and principal component. This field reflects the total interest and principal amount written -off.
WRITTEN -OFF AND SETTLED STATUSIf this section is populated, the lender has either restructured your loan by offering you different terms (extended the loan tenure or reduced the interest rate, etch
written -off this amount, or settled at some amount less than what the lender believes it was owed.
The possible values are as follows:
1. Restructured Loan 2. Restructured Loan (Govt. Mandated) 3. Written -off (WO) 4. Settled 5. Post (WO) Settled
What are the main factors that affect my CIBIL score? 

Many factors affect your credit score, the following being the five main ones:

  • Default or Settled status: Status of your loans is listed in the report. Nothing brings your score down more severely than a loan that has not been paid (defaulted) or has been paid only partially (settled).
  • Late payments: Paying your payments late can also hurt your score big time. The more payments you miss, the worse will be your score.
  • High credit utilization ratio: How much percentage of your total credit you use each month also affects your score. Your score drops when you have a high credit utilization ratio.
  • Unhealthy secured to unsecured loan ration: Secured loans include collateral while unsecured ones don’t. If you only have unsecured loans, like personal loans, or most of your loans are unsecured loans, your score will be adversely impacted.
  • Exhibiting “Credit Hungry” behavior: Seeking out too many loans in a short period is described as “Credit Hungry”. Such a behavior is unfavorably looked at by lenders.

Get yours at CreditSmart and CIBIL.com