Thursday, November 12, 2009

Learn How To Read CIBIL Report

CIBIL report is a record of all the loans and credit cards that a customer has. It consist the entire payment history of all the credit facilities obtained by a borrower.

A sample of credit report has the following features:

  • Personal Identification Information – Name, Date of Birth, Residential Address, Pan Number, Voters Id Number, Passport Number and Driving License Number.
  • Company Information – Company’s Name, Date of Incorporation, Firm’s Address and Pan Number of the company in case of a firms report.
  • Lender Deatils (If Any) – Details of all the accounts running with the member lenders.
  • Payment history of all the accounts.
  • Default and payment over due’s in a particular account.
  • Number of enquiries made by the different members to extend a credit facility in past 12 months.

Here is a sample of a credit report. Please note that this report is purely fictional and has got no relation with any individual or a firm. This sample would help you understand a CIBIL report in a proper way.

Let us discuss this sample report in detail:

  • In the starting you can see the personal details. We do not need to discuss this in detail as it is very much understood.
  • Second thing we see is the score. The score ranges from 100-900. High score is imparted to a borrower with good payment record. So, just by viewing the score we can judge that the customer’s record is clean as the score is high.
  • Summary in the sample shows the total number of accounts maintained, highest exposure amount, current balance of all the accounts and date of 1st loan taken and last loan taken.
  • Then we see the details for every particular enquiry. 1ST one shows that it is a personal loan, sanctioned on 08.02.2008. The loan amount is 500000 and the current balance is Rs.467768/-. Since there is no amount overdue, it means that the loan is clean.
  • Similarly we can see the details for second and fourth account. There is no amount overdue either of them and so the payments are regular.
  • Let us come on the third account now. Here we can see that the current balance is zero. This indicates that the borrower has made the complete payment of the loan. There is also a date reflecting in closed column (15.03.2006). This shows that the loan was closed on this date and as the difference between the open date and closed date is 3 years, it means the loan tenure was 36 months.
  • XXX shows that there is no updation for the following dates and 000 shows that the payments are made regularly.
  • In the end you can see the details of the enquiries made by different member banks done for extending a credit facility to the customer. There is a complete information on for which credit facility the application has been processed, for what amount and on which date. There is a complete record from first enquiry to the last enquiry made.
  • A sample of CIBIL report never shows the name of the member by which enquiry has been made or from which a loan or card is running.

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