What is CIBIL (Credit Information Bureau (India) Limited) score?

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What is CIBIL (Credit Information Bureau (India) Limited) score? Blog Image

Overview:

The Kerala High Court recently held that an application for education loan by a student could not be rejected on the ground of a low CIBIL (Credit Information Bureau (India) Limited) score.

About CIBIL (Credit Information Bureau (India) Limited) score:

  • It is a three-digit numeric summary of your credit history.
  • CIBIL or Credit Information Bureau (India) Limited maintains and calculates your credit score.
  • Value: The value of Credit Score may range between 300 to 900. 
  • Lenders can check the CIBIL report and CIBIL Score/CIBIL Rank to evaluate the risk of lending to applicants and accordingly approve or reject new loan/credit card applications
  • The closer a CIBIL Score is to 900, the higher are the chances of the consumer's credit card or loan application getting approved.
  • How is CIBIL Score calculated?
    • It is derived using the credit history found in the CIBIL Report
    • It takes into account borrowers’ credit profile over the last 36 months.
    • The credit profile includes all kinds of loans such as home loans, credit cards, personal loans, automobile loans, overdraft facilities etc that one has availed and their payment history.

Credit Information Bureau (India) Limited (CIBIL):

  • It is the leading credit bureau and Credit Information Company (CIC) licensed by Reserve Bank of India.
  • Primary Function: To collect and maintain financial data as provided by the lenders to further generate and provide credit reports and credit scores for its customers.
  • It maintains credit files on 600 million individuals and 32 million businesses.
  • CIBIL India is part of TransUnion, an American multinational group. Hence credit scores are known in India as the CIBIL Transunion score.

What is  CIBIL Report?

  • It is a consolidated credit report that includes the consumer's CIBIL Score and credit summary, personal information, contact information, employment information, and loan account information.
  • It is important to note that lenders consider both the CIBIL Score and Report to assess a person's loan eligibility.

 


Q1) What is Credit Information Bureau (India) Limited (CIBIL)?

It is the leading credit bureau and Credit Information Company (CIC) licensed by Reserve Bank of India. It collects and maintains financial data as provided by the lenders to further generate and provide credit reports and credit scores for its customers.

Source: Education Loan Cannot Be Rejected For Low CIBIL Score Of Student: Kerala High Court