CREDIT INFORMATION

BUREAU(INDIA) LIMITED
 INTRODUCTION
 CIBIL-India’s first credit information bureau which was
incorporated in 2000.
 It is a repository of information which contains the credit history
of commercial and consumer borrowers and provides the
information in the form of credit information reports.
 CIBIL’s aim is to fulfill the need of credit granting institutions for
comprehensive credit information by collecting and disseminating
credit information.
o How does CIBIL function?

CIBIL collects commercial and consumer credit related data and

collates such data to create and distribute credit reports to
members.
o Where does CIBIL get the information from?

CIBIL primarily gets information from its members only and at a

subsequent stage will supplement it with public domain
information in order to create a truly comprehensive snapshot of
an entity’s financial track record.
 SHAREHOLDERS
Promoters Shareholding pattern

SBI 40%

HDFC 40%

D&B 10%

Trans Union 10%

CURRENT SHAREHOLDING
 CONSUMER BUREAU
The Consumer Bureau was launched on April 5, 2004 with a database of 4 million
accounts contributed by 13 Members. Subsequently, their database has grown over
144 million accounts contributed by 114 Members. CIBIL’S consumer bureau
banks upon it vast and dynamic information repository of the India market to
provide its members with comprehensive risk management tools pertaining to
individual borrowers. The objective is to minimize defaults and maximize credit
penetration.

The software for CIBIL is developed and licensed by Trans Union, one of the largest
CCB in the world and CIBIL’S equity and technical partner.
 OFFERINGS OF CIBIL

 Consumer credit information report(CIR)

 Portfolio review report

 CIBIL Trans union score

 CIBIL Trans union personal loan score

 Bureau Credit characteristics (BCC)

 CIBIL Market insights

 CIBIL Locate plus

 CREDIT INFORMATION REPORT


Consumer Credit Information Report (CIR) is a vital tool used by credit grantors at the time of new customer acquisitions.
 It provide factual information on credit histories of borrowers enabling institutions to make objective lending decisions.
 With CIBIL Consumer CIRs credit grantors are equipped to identify risk areas, disburse credit faster and with greater
efficiency and grow business profitability.

PORTFOLIO REVIEW REPORT

 Tool to review the risk associated their existing portfolio of customers which provides the credit grantors with a
comprehensive view of their borrowers credit relationships across multiple lenders.

CIBIL TRANSUNION SCORE

India’s first generic score which has become the most trusted indicator for prudent decision making by credit grantors
CIBIL TRANS UNION PERSONAL LOAN SCORE
 First and only score for the market to predicate the likelihood of an applicant or a customer becoming
more than 91 days delinquent on a personal or consumer loan or the next 12 months.

BUREAU CREDIT CHARACTERISTICS

 List of predefined characteristic that summarize various aspects of customer credit information.

CIBIL MARKET INSIGHTS

 These reports are designed to provide an overview of the credit market basis geographics , demographics
and behavioral borrowing trends.

CIBIL LOCATE PLUS

 It leverages CIBIL’s vast and comprehensive information repository to provide you with comprehensive
contact information on your customers in a faster and more cost effective fashion.
 COMMERCIAL BUREAU
The Commercial Bureau has been launched on May 8, 2006, with a database of 6.73 Lakh accounts contributed

by 37 Members. Subsequently, their database has grown over 3.47 million accounts contributed by 95 Members.

It provide credit information pertaining to non-individual borrowers such as public limited companies, private

limited companies, partnership firms' proprietorships, and others.

CIBIL maintains a central database of information as received from its Members. CIBIL then collates and

disseminates this information on demand to Members, in the form of Commercial Credit Information Reports

(CIR) to assist them in their loan appraisal process.

Function of commercial bureau

Commercial Credit Information Report (CIR)
Suit- filed cases
Commercial Credit Information Report (CIR)
The information in the Commercial Credit Information Report broadly covers
information about the borrowing entity and the credit/ loan account details like:
o Borrower information
 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


Suit-Filed cases
It relates to the suit filed accounts against defaulters of various banks, all India notified Financial
Institutions (FIs) and State Financial Corporations (SFCs). The contents of this Information have been
provided by various banks, FIs and SFCs, pursuant to the directions of the Reserve Bank of India
dated the 4th of June, 2002, bearing reference number DBOD No.DL.BC. 111/20.16.001/2001-02.
 BENEFITS OF CIBIL
 Increased Credit Volumes

Credit Bureaus facilitate increased lending opportunities for credit grantors while allowing
easier access to credit for borrowers. The existence of credit bureaus in developed countries
has facilitated increased market penetration of credit (to more than 66% as a percentage of GDP
as compared to 3% for India) while keeping non-performing loans in check (approximately 1% of
outstanding credit).

o Operating Efficiencies
Credit Portfolio Quality
The use of CIRs accessed from a credit bureau will enable credit grantors’ loan officers to accurately
evaluate borrower risk by making comprehensive credit histories available to decision makers.
The CIRs will facilitate an objective and transparent assessment of credit applications.
Concurrent borrowers and serial defaulters will be identified and minimized early in the approval
process - consequently reducing associated recovery and write-off costs. Similarly, premium
borrowers will be identified and serviced faster. Ultimately, CIRs will enable Members to
judiciously mix relationship-based lending and information-based lending. CIRs will serve as the
first level of due diligence in the appraisal of a credit application .
Speed and Cost
The use of CIRs will make processing loan applications easier, faster and cheaper by
sometimes eliminating the need to additionally research and verify borrower details.

 Differential Pricing
Owing to the lack of comprehensive credit information, all borrowers are charged an
interest rate with an assumed level of default risk. This means that all borrowers are
charged identical risk premiums regardless of their payment history and thus pay a
premium that in developed countries is only applied to previously defaulting
borrowers. As credit grantors begin to use comprehensive credit information they will
be able to differentiate between good borrowers and defaulters. In an increasingly
commoditized credit market, credit grantors will be able to use price in order to
differentiate their loan products . Hence, the use of CIRs will prove beneficial to both
credit grantors and borrowers
THANK YOU