CIBILBrief Introduction

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Agenda• What is Cibil• Cibil Score – Meaning• Analysis of Cibil Score• Reasons for lower Cibil Score• Advantages of Higher Cibil Score• Members of Cibil• Cibil Score for Home Loan• Glimpse of Home Loan Process

CIBIL refers to Credit Information Bureau (India) Limited

What is Cibil• CIBIL is a Credit information company founded in August

2000.

• CIBIL India’s 1st credit information Bureau was established by SBI and HDFC , with 40% shareholding of each , while Dun & Bradstreet information services India Pvt Ltd and Trans Union International Inc. hold 10% each.

• CIBIL is a repository of information, which contains the credit history of commercial and consumer borrowers.

• CIBIL scores are calculated on the basis of at least 6 months of financial data of an individual.

• The CIBIL score ranges from 300 to 900.

• The data indicates that loan providers prefers credit scores which are greater than 750.

Cibil Score - Meaning

Analysis of Cibil score

Score Analysis

-1 Borrower has no history of borrowings with any member of CIBIL

300 – 600 In general credit cards and loans are not provided to people in this slab.

601 – 750 This is intermediate range of scores and will allow to borrow from various lenders , however banks may refer

to overall financial position.

750+ Scores above 750 considered to be good and will help getting loan or a credit card with ease.

• Cheque Bounce/ dishonors

• Irregular Loan Payments

• Defaulting on Credit Card bills / making late payments or consistent part payments.

• Defaulting as a Guarantor.

Reasons for Low Cibil score

• Quick processing of loan and credit card applications.

• More negotiating power.

• Easy availability of credit such as Loans.

• Assurance of Safety.

Advantages of Higher Cibil score

Members of Cibil• Banks

• Financial Institutions

• Non Banking Financial Companies

• Housing Financing Companies

• Credit Card Companies

Cibil Score for Home Loan

• Cibil scores play a major role in processing Home Loan applications

• A good Cibil score for home loan normally starts from 700 upwards.

• However, the closer you are to 900, the more faith the credit institution will have in your capacity to repay the home loan.

• Before processing your home loan application, a bank will obtain your credit score and repayment history from CIBIL.

Glimpse of a Home Loan process

2

1Applicant fills a loan Application form

Gives it to over the bank along with the required documents

4

3Document, Cibil, Technical, Legal Verification and Eligibility Check

Loan Sanction and Disbursement

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