CREDIT

INFORMATION
BUREAUE(INDIA
) Ltd. - CIBIL
WHAT IS CIBIL???
Credit Information Bureau (India) Limited (CIBIL) is Indias first Credit
Information Company (CIC) founded in August 2000. CIBIL collects
and maintains records of an individuals payments pertaining to
credit facilities (like loans, credit cards, Non-fund lines)
NEED and OBJECTIVES
A drastic rise in the level of spending.
Higher purchasing power as result of rapidly rising salaries.
Rapid rise in lending by the banks in order to utilize the above
mentioned opportunities.

All these factors lead to increase in the importance of maintaining
proper records of credit transactions. In order to achieve this, CIBIL was
created with following objectives:

To keep a tab on all the credit lent
To identify defaulters and refrain from re-lending to them to avoid
bad debt
To facilitate good borrowers with easy and timely credit facility.


SHAREHOLDING PATTERN AND
MEMBERS(as on March 31
st
2014)
All the Credit Grantors; Banks, Financial
Institutions, State Financial Corporations,
Non-Banking Financial Companies,
Housing Finance Companies and Credit
Card Companies are the Members of
CIBIL. These members only provide the
information about the individuals credit
history which can later be used by the
other institution while taking decisions to
lend money to that individual or not
TYPES OF BANK CREDIT ACTIVITIES
BANK
CREDIT
ACTIVITIES
RETAIL
BANKING
WHOLESALE
BANKING
RETAIL
BANKING
CIBIL TRANSUNION SCORE &
INFORMATION REPORT
The CIBIL TransUnion Score is a 3 digit numeric summary of your
credit history which indicates your financial & credit health. The
Score is derived from your credit history as detailed in the Credit
Information Report [CIR] and ranges from 300 to 900 points. Your
credit score tells the lender how likely you are to pay back loan or
credit card dues based on your past repayment behavior
A Credit Information Report (CIR) is a factual record of an
individuals (borrowers) credit payment history compiled from
information received from different credit grantors which are the
CIBIL members. It contains all the information about a borrowers
transaction in the past..

FACTORS AFFECTING CIBIL TRANSUNION
SCORE.
AVERAGE CREDIT SCORES w.r.t.
AGE GROUP
Recently officials from around 4 major public and private banks including SBI, AXIS Bank
etc. conducted a study on the credit activities of different age-groups. The study
revealed the following results:
18-24 years old; Average credit score: 638
25-34 years old; Average credit score: 652
35-44 years old; Average credit score: 659
45-54 years old; Average credit score: 685
55+ years old; Average credit score: 724

Conclusion: The study concluded that people in the 18-39 age group had the
greatest number of late payments during the previous 12 months; that the 40-59 age
group held the greatest amount of debt; and the 60+ age group had the lowest
average credit utilization (used the least amount of credit that was available to
them).
WHOLESALE
BANKING
WHOLESALE BANKING
CIBIL also maintains the credit information of entities as submitted to
them by its member banks and financial institutions. The credit
products included are cash credit, overdraft facilities, loans of all
maturities, bank guarantees, letters of credit, deferred payment
obligations, forward contracts and any other debt exposure
companies incur. This information is used to create a Company
Credit Report (CCR)- a month-on-month record of a companys
debt related exposure and payments.
Benefits of using a CCR
While applying for a loan: CCR is used to evaluate companys
creditworthiness whenever you apply for a loan or additional credit lines.
Accessing CCR helps the company to ensure its accuracy and a better
understanding of financial standing.

While building reputational collateral with business partners: Partners and
vendors see a demonstrated ability to regularly service loan obligations as
an indicator of your financial strength.

While re-evaluating existing trade credit practices: Ask your business
partners to build reputational collateral by sharing their CCR with you, which
will give you an understanding of their creditworthiness and help you to
periodically re-evaluate the credit terms you provide.
HOW TO IMPROVE YOUR CREDIT
SCORE or COMPANY's CCR
Pay off debt
Pay on time
Limit new accounts
Don't close old accounts
Keep tabs on your credit

Mayank Jain | Summer Intern
Mobile: +91 8860540128
mnkjain14@gmail.com

506, Antriksh Bhavan,
Connaught Place, New Delhi -
110001