What is a CIBIL?
Commonly called CIBIL, factual name TransUnion CIBIL Limited(Formerly known as Credit Information Bureau (India) Limited)
CIBIL is India’s first Credit Information company. It’s one of the four credit bureaus operating in India. It’s was incorporated in 2000, however, it formerly started its operation in 2004. Being a Credit Information company, operation under the Credit Information Companies (Regulation) Act, 2005 and falls under the Reserve Bank of India purview.
CIBIL holds the repository of information for retail and corporate customers who have availed credit facility from any of the Financial Institutes (Banks, NBFC, Co-operative Banks, RRBs (Reginal Rural Banks), Public Financial Institution, Housing Finance Institution)
Who can be a member of CIBIL
Financial Institutes like Banks, NBFC, Co-operative Banks, RRBs (Reginal Rural Banks), Public Financial Institution, Housing Finance Institution
Credit Rating agencies like CRISIL, India Ratings and Research Pvt Ltd, ICRA Limited, and so on.
Insurance Companies like LIC, ICICI Prudential Life Insurance, SBI Life Insurance, HDFC Life and so on
Telecom Companies like BSNL, Vodafone Idea, Airtel, and so on.
CIBIL’s primary job is to help lending and financial institutes to take a calculated risk and helps in decision making while underwriting a credit application of a prospective customer.
When a customer applies for a loan or a credit card with a Financial Institute, they in turn enquire with CIBIL and check if the said customer has any existing credit line and how has he or she behaved in the last 36 months on the existing credit.
CIBIL collects customer data from its members. It does not hold any authority to change the customer data by itself and is completely reliant on the members who submit the data to CIBIL