Thursday, November 12, 2009

Know Borrower’s Credit History From CIR (CIBIL Information Report)

CIBIL information report is maintained by CIBIL for helping all the banks and financial institutions who are members of the bureau. The credit bureau keeps the information about the credit history of an individual or a firm compiled together in a database which is issued to the banks on request.

The main objective of maintaining these records is to check the entire past and present status of the borrower in respect to the loans and credit cards availed by the borrower.

CIBIL report contains information on all the loans and credit related advances that a borrower has. The complete track of payment and default is available in the credit report of an individual.

This report also has the records for all the loans that have closed, credit cards write offs, settlements on the loans etc. And also, the information on closed loans is kept for 7 years in the report.

CIBIL information report plays a very important role in deciding the loan amount to be sanctioned to the borrower. It also help banks decide whether a particular customer should be given a loan or not.

The borrower information in CIBIL report is not open to everyone.

CIBIL can issue one’s credit information report on special request only to the following:

  • Banks who are members with CIBIL and planning to process your loan application for approval or credit card
  • Insurers who consider you for availing an insurance policy and also for renewal of the policy
  • Sometimes, CIBIL report is also required by big employers who wish to appoint you for a job or project on contract basis
  • Any government organisation for knowing your financial status etc.

Credit information report keeps the full record of credit activities of a borrower.

The main features of a credit report are:

  • Personal information- By personal information we mean identification details. This includes your name as well as your pen name, current mailing address and previous one if there was any, Date of birth, all other identification numbers like passport number, pan number and voters ID no.
  • Details of all the loans and credit cards that have been reported by the member institutions to CIBIL.
  • Loan type, sanctioned amount, date on which loan was sanctioned, date of last payment received, current outstanding amount, date on which loan was closed, overdue amount past the due date if any.
  • Credit information report also shows the highest sanction amount on your credit card. It means the highest amount of credit extended to the borrower at any point of time during the tenure of the account.
  • Write off details- If the borrower fails to make the payment for 180 days on the trot for the account, then the bank has to write that account off as a bad debt and is reported in CIBIL as Write off account.
  • Credit information report shows the complete list of enquiries made in past 12 months for any credit facility application made to the member by the borrower.

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