The Credit Information Bureau India Limited, also popularly known as CIBIL, is a credit information company. This bureau is responsible for gathering and recording the credit activities of the customers. They use raw financial data to get the credit scores as well as the credit information report of the people of India. The credit score for an individual or a company decides their creditworthiness. This information is passed on to banks and other financial institutions that wish to analyze the credit risk of their clients.
Let us know all about CIBIL services, CIBIL charges, and more.
CIBIL has been helping both the lenders as well as the borrowers.
Here is how CIBIL helps the lenders:
The lenders need to know about the client’s credit behaviour and the credit score of the individual or the company. The lenders can view the report generated by the CIBIL and know whether the client has the repayment ability or not. So, the lender gets to evaluate whether there is a risk associated with the applicant’s profile. CIBIL helps financial institutions take the best lending decisions as they filter out the high-risk candidates.
Lenders use the credit score issued by the CIBIL at the time of passing the loan application. So, it is essential for you to maintain a good credit score, as your loan application approval depends on the score.
The individual’s credit score can remain between 300 to 900. The higher the credit score, the better the credibility. This is one of the checks that the lenders use at the time of loan approval. If a candidate has a greater credit score, they don’t take much time to provide instant approval for the loan. If the person has a credit score of more than 750, then many lenders provide immediate loans to them due to their high creditworthiness.
Here is how CIBIL helps the borrowers:
The borrowers get a lot of advantages from having a good credit score. The best part is, that you can improve your credit score by doing the following:
Clearing your dues on time.
Ensuring to have a low debt-to-income ratio.
Not applying for many credit cards and several loans. If you apply for several credit cards as well as loans, then you will be labeled as credit hungry which lowers your credit score.
Whenever an applicant requests a loan, the lender checks the credit score from the CIBIL.
You need to check your credit score occasionally. The same is imperative at the time of applying for the loan. Knowing the credit score beforehand will save you from the risk of loan application rejection. But, checking your credit score too frequently may also lead to the lowering of your score.
So, if you want to check your credit score, then there are two ways for you: soft checks and hard checks. A soft credit check is when you or someone you authorize checks your credit report while a hard check is when a lender checks your credit score. In the soft check, there is no impact on your credit score. Hard enquiries can hamper your credit score. You can also calculate your credit score without even spending money.
Usually, the credit score is a picture of how the financial history of your past three years has been. To know your correct CIBIL score, you can log on to the CIBIL website and subscribe to a cibil charges plan. There are 3 plans available for you. Here are the cibil report charges along with the duration of the plans.
In the basic plan, which costs Rs.550 per month, you get a one-time report.
In the standard plan which is priced at Rs.800 for 6 months, you get two reports within your subscription period.
As per the premium plan, cibil report fees is Rs.1,200 annually, you get four detailed reports.
Here is the list of essential subscription features which are narrated below:
You can find how your credit score may be different in the future as per your credit behaviour.
Under this one, you get to receive customised loan plans as per your unique credit score as well as credit profile.
In this one, you get a personalised credit score analysis along with the detailed summary.
By viewing the changes in your credit score, you can track your credit health.
To become a member of the TransUnion CIBIL, here is the eligibility criterion:
The credit institutions like banks, RRBs, NBFC, co-operative banks, etc. may apply.
Insurance companies and telephone services companies can also apply.
Asset reconstruction companies, Credit rating agencies, and all users registered under the CICRA Regulation 3 clause J can get the membership.
To become a member of TransUnion CIBIL, you need to:
Provide a single contact point for Transunion CIBIL.
You need to submit the following documents:
The membership application form needs to be filled in the financial institution or a bank.
Pricing annexure which must be stamped and signed by the member
Letter of application on the financial institution or a bank Letterhead
Operating rule book in which all the pages must be stamped and signed by the member
Letter of authority copy issued by a financial institution or a bank on letterhead. This letter of authority is about confirming the capacity as well as the authority of the concerned signatories.
A true copy of the license is provided by the Reserve Bank of India or HFC. The same needs to be stamped and signed by the member.
Other documents are needed as per the eligibility criteria for entities or specified users, as per the rules of RBI.
You need to pay the annual fee as well as the membership fee to become a member. The CIBIL charges for membership is Rs. 10,000/- along with the taxes @18%. You also need to pay the annual fee of Rs. 5,000/- along with the taxes charged at the rate of 18%. Membership fee and annual fee payment can be paid using the cheque or the DD (demand draft). The same needs to be attached in the name of “TransUnion CIBIL Limited”. You need to physically courier the copies to the:
Membership Team of the Transunion CIBIL
TransUnion CIBIL Ltd.
One World Center
19th Floor - Tower 2A
Senapati Bapat Marg, Elphinstone Road, Mumbai.
After the entire documentation, the company will send you the costs of the services. Once all the formalities are done, Transunion CIBIL will send you the "Member Kit" containing detailed information on how to begin using their services. For any assistance, you can contact the Membership Desk or call on the number – +022 (62358100).