Credit Information with CIBIL

Credit Information with CIBIL

Commercial Credit Bureau

Commercial Credit Bureau is an organization that collects credit information from various sources and provides consumer credit information on commercial consumers for a variety of uses. It maintains a repository of information that contains credit history of commercial borrowers. It helps lenders assess credit worthiness, the ability to pay back a loan, and can affect the interest rate and other terms of a loan. It provides information in the form of a Credit Information Report. It is a factual report on of a borrower's credit payment history compiled from information received from different credit grantors.

In India, CIBIL’s Commercial Bureau banks on a vast information database of credit histories of commercial borrowers. In its initiative to improve Credit flow to SMEs, CIBIL is being supported under SME Financing and Development Project implemented by Project Management Division, SIDBI, with an aim to facilitate flow of credit to the under penetrated SME sector while increasing banks’ profitability and market penetration (via sound credit decisions) and reducing non-performing loans (via credit information tools).

 

Credit Information Report (CIR)

It contains the following information:

  • Basic borrower information such as:
    • Name and Address
    • D-U-N-S® Number
    • Other Identification numbers; e.g. PAN, Registration No.
    • Legal constitution
    • Relationship details; e.g. major shareholders, directors and their addresses and D-U-N-S® Number
    • Number of inquiries made on the borrower

     

  • Account Details:

    • Number of credit facilities
    • Credit type
    • Loan amount
    • Outstanding amount
    • Asset classification
    • Willful defaulter and suit-filed status
    • Guarantor details

 

Importance of CIR to MSME

  • A clean credit history improves the credit worthiness of Borrower.
  • It enhances acceptability with banks, lenders and financial institutions.
  • It helps to obtain credit at a cheaper rate at a faster pace.
  • It reduces collateral requirement and simplifies lending terms.

 

Methods of Improving Credit Report

  • On time repayment
  • By modifying inaccurate information regarding delayed repayment/ nonpayment of credit. It should be done with credit grantor and credit grantor will in turn notify CIBIL.

 

For more information, you may refer to the  CIBIL website