CIBIL

With increasing rate of defaults of loans , the Government and RBI felt the need for a mechanism where by the credit worthiness of a borrower could be found , so that risk involved in lending to that person or institution could be better assessed.

This was when CREDIT INFORMATION BUREAU (INDIA) LIMITED [CIBIL] was formed , which would collect data from a crossection of lenders and then share it with Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies.

The collection of data is done using PAN details and such other uniquely identifiable atributes of the borrower . So before a lender lends any loan , he would first get a report from CIBIL about this borrower , see if there are any other liabilities for this borrower and then try to take a much better informed decision .

For a individual ,it is possible to get a copy of their own Credit report either from a Financial institutuion where they have applied for a loan or directly from CIBIL

CIBIL website can be accessed at http://www.cibil.com/

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