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Presented To Presented By :-
Prof. Abhik Agrawal Niranjan Kumar . Nirmala Shukla . Nirbhay Singh . Nishant Agrawal . Parmanand Gupta . Pratiksha Singh Chauhan
Sanghvi Institute Of Management And Science
School Of Advanced Management
Presentation On - CIBIL
CREDIT INFORMATION BUREAU (INDIA) LIMITED
IN ASSOCIATION WITH DUN & BRADSTREET AND TRANS UNION
India’s First Credit Information Bureau
Contents What is a Credit Bureau? Introduction Need for CIBIL CIBIL – The Promoters Members of CIBIL Functioning of CIBIL CIR(Credit Information Report) Advantage Of CIBIL For Its Members
What is a Credit Bureau?An organization that: Collects data pertaining to
Identity data about Consumer (Individual) and Commercial (Business) entities
Credit InformationPayment History
Compiles Credit Information Reports on consumer and commercial borrowers and makes these available to members on request.
Is a third-party service provider for the financial sector
Introduction CIBIL (India’s first credit information bureau) is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports
Need For CIBILLending money is a risky activity. Before granting loan to the customers, lending institution has to check the credit worthiness of the customer. It includes His Payment CapacityPast Loan Repayment Records Current Liabilities. Thus credit appraisal is like a lenders shield against credit risk. CIBIL aids to this process by providing crucial information regarding loan seekers. This includes days past dues their last credit card bill or any default in paying installments of their current or previous loan.
CIBIL – The Promoters
India’s largest bank India’s largest HFC
World’s leading provider of B2B credit information
Dun & BradstreetAmongst the world’s largest consumer bureaus
40% 40%
10% 10%
Members of CIBIL
Banks
All-India Financial Institutions
Non-Banking Financial Companies
Credit Card Companies
Housing Finance Companies
State Financial Corporations
121 Credit Grantors Have Accepted Membership
75 Banks – Over 90% total credit outstanding amongst Commercial Banks 13 HFCs – Over 80% total credit outstanding amongst HFCs 10 FIs – Over 90% total credit outstanding amongst FIs 16 NBFCs – Substantial portion of the credit outstanding amongst NBFCs 5 SFCs Substantial portion of the credit outstanding amongst SFCs 2 CCCs - 100% total credit outstanding amongst Credit Card Companies
75
16
13
10
5 2
Functioning of CIBIL
Relationship Based Lending Information Based Lending
Credit Information Report(CIR) :-
A Credit Information Report (CIR) is a factual record of a borrower's credit payment history compiled from information received from different credit grantors. Its purpose is to help credit grantors make informed lending decisions - quickly and objectively
CIR
Type of information on a borrower is available in the CIR:-
Basic borrower information like:
1.Name 2.AddressIn case of individuals:3.Identification numbers 4.Passport ID 5.Voters ID 6.Date of birthIn case of non-individuals 7.D-U-N-S® Number 8.Registration Number 9.Legal Constitution
Records of all the credit facilities availed by the borrower Past payment history Amount overdue Number of inquiries made on that borrower, by different Members Suit-filed status.
Type of information is NOT included in the CIR
Income / Revenue details
Amount(s) deposited with the bank
Details of borrowers' assets
Value of asset(s) mortgaged
Details of investment(s)
1-CIBIL Provides Credit Information CentralizedComprehensive Reliable2-CIBIL Facilitates credit grantors in deciding onWhom not to give creditWhom to give credit and what extent3-CIBIL Provides objective tools for risk management4-CIBIL's CIRs are aimed at helping credit grantors make fast and objective lending decisions.5-CIBIL help to Improve asset quality and reduce NPAs.
Advantage Of CIBIL For Its Members
6- Speed and Cost
The CIBIL CIRs will make processing loan applications easier, faster and cheaper by sometimes eliminating the need to additionally research and verify borrower details. The average loan in India is sanctioned in 2-3 days. A credit grantor using CIRs will be able to significantly reduce this turn round time and thus have a competitive edge in the marketplace.
7- Credit Portfolio Quality
International Scenario
In USA
Dun & Bradstreet - 1841Equifax - 1946Trans Union – 1968
In other countries
Germany - 1934Turkey - 1951Belgium -1967
In developed countries, Bureaus have been in existence for a long time