_________________________________________ CREDIT INFORMATION BUREAU (INDIA) LIMITED _______________________ IN ASSOCIATION WITH DUN & BRADSTREET AND TRANS UNION PRESENTED BY :- AY U S H I M I T TA L I S H A N T M A H A JA N N I M I T A G A R WA L SANDEEP GULERIA S A R T H A K G U P TA S U G A N D H A S A C H D E VA
WHAT IS CIBIL ? Indias first Credit Information Bureau (India) Limited , incorporated in year 2000. It is a repository of factual information on the credit history and repayment records of commercial and consumer borrowers. Established by the Government of India and the RBI. The legislation has enabled banks to submit data to CIBIL without obtaining borrower’s consent.
MAJOR OBJECTIVES To provide comprehensive credit information by gathering credit related information regarding commercial and consumer borrowers. To maintain a database of this information and selling it in the form of credit reports to a closed user group of Members.
HOW DOES CIBIL OPERATES ? Collects, Collates and Disseminates credit information of borrowers from its Members (who are actually credit grantors). This information will be supplement by CIBIL with public domain information. Allows the credit grantors to have access to its database to search and gain a complete picture of the payment history of a credit applicant.
CIBIL OPERATION (CONTD.) Reports could be obtained from CIBIL only by Members who contribute all data about the borrowers CIBIL collects commercial and consumer credit-related data and collates such data to create and distribute credit reports to Members CIBIL does not grant or deny credit.
MEMBERS OF CIBIL Banks Financial Institutions Non Banking Financial Companies Housing Finance Companies State Financial Corporations Credit Card Companies
CIBIL – THE PROMOTERS India’s largest bank India’s largest HFC 40% 40% 10% 10% Dun & BradstreetAmongst the world’s World’s leading providerlargest consumer bureaus of B2B credit information
CIBIL – THE SHAREHOLDERS The shareholding pattern now is as follows: - Shareholding Distribution (%) Bank of Baroda Standard GE Strategic 5% Chartered Bank Investments India State Bank of India 5% 2.5% 10% Trans Union International Central Bank of India Inc. 10% 5% ICICI Bank Ltd. 10% Dun & Bradstreet Information Services India Pvt. LtdCiticorp Finance (India) 10% Ltd 5% Bank of India 5% Union Bank of India 5% The Hong Kong and Shanghai BankingPunjab National Bank Sundaram Finance Ltd. Corporation Ltd. 5% Housing Development 2.5% 5% Finance Corporation Ltd. Indian Overseas Bank 10% 5%
CIBIL – PRODUCTS & SERVICES1. Consumer Credit Information Report (CIR) Based on information database of individual borrowers. Tool used by credit grantors at the time of new customer acquisitions. Provides factual information on credit histories of borrowers enabling institutions to make lending decisions. With CIRs credit grantors are equipped to identify risk areas, disburse credit faster , with greater efficiency and grow business profitability.
2. Portfolio Review Report An extremely effective tool for credit grantors to review the risk associated with the existing portfolio of customers. Provides the credit grantor with a comprehensive view of their borrower’s credit relationships across multiple lenders.3. CIBIL TransUnion Score India’s first generic score and has become the most trusted indicator for prudent decision making by credit grantors. With it, the credit grantor can effectively predict the likelihood of an applicant becoming more than 91 days delinquent on one or more tradelines over the subsequent 12 months.
4. CIBIL TransUnion Personal Loan Score First and only score for the Indian market to predict the likelihood of an applicant or customer becoming more than 91 days delinquent on a personal or consumer loan over the next 12 months. This score is the result of collaboration between Credit Information Bureau (India) Limited (CIBIL) and TransUnion.5. Bureau Credit Characteristics (BCC) List of predefined characteristics summarizing various aspects of a customer’s credit information.
TYPE OF INFORMATION IN THE CIR? The CIR includes the following information: Basic borrower information like: Name Address In case of individuals: In case of non-individuals: Identification numbers D-U-N-S® Number Passport ID Registration Number Voters ID Legal Constitution Date of birth
INFORMATION IN THE CIR (CONTD.) Records of all the credit facilities availed by the borrower. Past payment history. Amount overdue. Number of inquiries made on that borrower, by different Members. Suit-filed status.
COMMERCIAL CIRBORROWER INFORMATION ACCOUNT DETAILS Name and Address Number of credit facilities D-U-N-S® Number Credit type Other Identification numbers; e.g. Loan amount PAN, Registration No. Outstanding amount Legal constitution Relationship details; e.g. major Asset classification shareholders, directors and their Wilful defaulter and suit-filed addresses and D-U-N-S® Number status Number of inquiries made on the Guarantor details borrower
INFORMATION NOT IN CIR?The CIR does not contain: Income / Revenue details Amount(s) deposited with the bank Details of borrowers assets Value of asset(s) mortgaged Details of investment(s)
CIBIL SCOREThe score is an objective numeric summary of that information.The CIBIL TransUnion Score takes a "snapshot" of a consumersCIR and with the use of advanced analytics moulds theinformation into a 3-digit number representing the probabilitythat a consumer will default on a credit facility over the next 12months. The possible score ranges between 300-900.Each member (that chooses to use the CIBIL TransUnion Score)has its own benchmark of the number that constitutes a "good"score. For example, a score of 670 may be an adequate score forsome members but be inadequate for others. CIBIL does notrecommend what score should be used as a cut-off for loanapplication eligibility.
CIBIL SCORE (CONTD. 1)The Score Will Be "0" In The Following Scenarios :Credit history is less than 6 months.Date Opened of account/s is less than 6 months from the current date.The Score Will Be "-1" In The Following Scenarios :Account information not available.CIR has only enquiries and account information not available.The last date reported or date closed is older than 24 months for allaccounts.Some Credit Institution/s credit policy prevents them from providingloans to an applicant with scores of "0" or "-1“.
CIBIL SCORE (CONTD. 2)Factors Influencing The Score Are:- Payment History Outstanding Debt Length of Credit History Number and types of credit accounts Utilization Applications for new credit.
RECTIFICATION OF INACCURATE INFORMATION IN THE CIBILTo rectify information in a credit report drawn on the person: Contact the credit grantor from whom the person has availed the loan and request the necessary changes. The credit grantor will then report the change to CIBIL and CIBIL will subsequently make the necessary updates in records.
BENEFITS OF CIBIL For Credit Grantor: Provides access to better credit information by allowing credit grantors to exchange credit information while ensuring they do not lose their competitive advantage. Automated decisioning system leading to lower cost of credit evaluation, consistent decisioning and greater efficiency. Assists in evaluating and monitoring repayment ability and payment diligence. Lowers default risk by assisting credit grantors improve their credit portfolios. Allows credit grantors to price the risk appropriately.
BENEFITS OF CIBIL (CONTD.)For Borrowers: Provides faster access to credit. Reduces cost of borrowing for borrowers with good credit records. Reduces subjectivity in the credit assessment process. Encourages borrowers to maintain greater self discipline in acquiring financial commitments. Allows borrowers to build reputational collateral by following correct repayment behaviour.
LATEST ON CIBIL 360 credit grantors have accepted membership 181 Banks – Over 90% total 129 credit outstanding amongst NBFCs 181 Banks Commercial Banks.8 SFCs 25 HFCs – Over 70% total2 CCCs credit outstanding amongst 10 FIs 25 HFCs HFCs. 10 FIs – Over 90% total credit outstanding amongst FIs. 8 SFCs – Substantial portion of the credit outstanding amongst SFCs. 2 CCCs - 90% total credit outstanding amongst Credit Card Companies. 129 NBFCs – Substantial portion of the credit outstanding amongst NBFCs.