CIBIL

CHAPTER 1: INTRODUCTION TO CIBIL

1.1 INTRODUCTION:
CIBIL - India's first credit information bureau - has been established to cater to the credit
information requirement of the financial sector and serves as an effective mechanism for
curbing the growth of Non-Performing Assets (NPAs). The Reserve Bank of India (RBI)
constituted a Working Group in December 2001 to examine the possibility of CIBIL
performing the role of collecting and disseminating information on suit-filed accounts
and list of defaulters, being reported to RBI by banks and notified Financial Institutions
(FIs).
RBI then decided to implement some of the recommendations of the Working Group,
which satisfied the existing legal framework of the time. In their letter no:
DL.BC.111/20.16.001/2001-02 date1d June 4, 2002; RBI apprised banks, FIs and state
financial corporation’s of the formation of CIBIL and directed them to send, to CIBIL as
well as to RBI, data on:
• Suit-filed accounts of Rs. 1 Crore and above, and
• Suit-filed accounts (willful defaulters) of Rs. 25 Lacs and above
Consequently, banks and FIs submitted the list of suit-filed accounts of Rs. 1 Crore and
above, as on March 31, 2002 and quarterly updates thereof till December 2002, to CIBIL
as well as RBI. They also submitted the list of suit-filed accounts (willful defaulters) of
Rs. 25 Lacs and above as at the end
of March, June, September and December 2002. Thereafter, from March 31, 2003
onwards, this data is being submitted to CIBIL alone. At present, CIBIL is maintaining a
database on suit-filed accounts of Rs. 1 Crore and above and suit-filed accounts (willful
defaulters) of Rs. 25 Lacs and above.
This information is based on an application developed to enable the users to access data
through a parameterized search process across banks and companies at various
geographical locations. Suit-filed accounts of lower value are being covered in a phased
manner.

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1.2 FEATURES OF CIBIL:

❖ Complete Credit Record- For credit grantors to gain a complete picture of

the payment history of a credit applicant, they must be able to gain access to the
applicant's complete credit record that may be spread over different institutions.
CIBIL collects commercial and consumer credit-related data and collates such
data to create and distribute credit reports to its Members which are credit
institutions and banks in India.

❖ Members of CIBIL-CIBIL’s over 1000 strong member base includes all

leading public & private sector banks, financial institutions, non-banking financial
companies and housing finance companies.

❖ CIBIL’s products and steps for loan sanction - CIBIL’s products,

especially the Credit Information Report (CIR) and CIBIL TransUnion Score are
very important in the loan approval process. Once the loan provider has decided
which set of loan applicants to evaluate, it analyzes the CIR / Score in order to
determine the applicant’s eligibility. Eligibility basically means the applicants
ability to take additional debt and repay additional outflows given their current
commitments. Post completion of these first 2 steps and other relevant documents,
loan is sanctioned.

❖ Credit Score -The CIR and Credit Score not only help loan providers identify
consumers who are able to pay back their loans. This translates into faster loan
approvals for consumers. An individual with a credit score above 750 has better
bargaining potheyr with the lenders, since he is perceived as a responsible
borrower. Since consumers can now access their Credit Scores and CIRs directly
from CIBIL at the cost of INR 470, they can see for themselves how they are
perceived by the lenders before applying for a loan.

❖ Better Decisions-CIBIL empotheyrs both loan providers and individuals to see

their financial and credit history more clearly and hence, take better and more
informed decisions.

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❖ Economic Stability- CIBIL helps to maintain economic stability within the

banks and also helps to maintain the cash and credit transactions.

❖ Helps to minimize default transactions-As every individual is given a

credit score, it becomes easier for the banks to decide whether to conduct credit
transactions with the person or not. If the person has made a default in any
investment, his credit score gets deducted and vice versa.

❖ Facilitates credit grantors in deciding on:-

1. Whom not to give credit
2. Whom to give credit and what extent
❖ Provides objective tools for risk management

1.3 Values:
CIBIL has 3 main values: -

1. Sustainability:
a) Utmost care for their Business
b) Utmost care for their Environment
c) Utmost care for their Society

2. Integrity and Trust:

a) Highly ethical behavior
b) Righteousness
c) Honesty and Sincerity
d) Transparency and Commitment in dealings

3. Fairness:

a) Objectively taken Decisions; Implemented with Equality

b) Collective Good, while respecting individual Freedom

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1.4 CIBIL’s Culture:

CIBIL’s excellence in delivering products and servicing the customer needs comes from
the dedicated and focused people working. One of the most critical aspects of a
successful organization is the feeling of “oneness” and a deep sense of pride and
belonging towards the organization among all the team members which comes from a
shared “Culture and Vision”. Constant endeavor to promote these characteristics and
create optimum environment for people to achieve great things.

• Ways of Work:
• Customer • Collaboration • Creditability

Excellence in Delivery Shared Vision Ethical Behavior

Personal Ownership Break Organization Silos - Walk the Talk
One CIBIL
An Ambassador for Leadership Connect Take Accountability
CIBIL
One can also pursue his career at CIBIL. It provides a lot of different career opportunities
to the beginners as well as the well experienced. It builds great careers. CIBIL believes
that good people in a great environment are likely to inspire extraordinary results. They
have strived to build a culture that is rooted in this belief.

What one can expect from CIBIL:

• Learning and Growth
• Competitive Compensation and Benefits
• Open Door Policies and Employee Centric Workplace Culture
• Work with Domain Experts

What they expect of all CIBILians:

• Accountability and Personal Ownership
• Thinking Fresh
• Challenging the Status Quo

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Following are few fields where people can work and build great careers at CIBIL:

1) Operations: They currently live in the information age. Big data has become
central to driving business decisions. CIBIL is at the center of this information
revolution. They collect and collate millions of bits of information into reports
that can be used for various purposes. The challenges encountered while trying to
make meaning out of data requires one to be analytical, restheirceful and
persistent.
2) Information Technology: The Information Technology (IT) Team is
responsible for managing CIBIL’s vast Hardware and Software Technology
Infrastructure. The IT Team provides valuable technical insights, production and
testing support for new and existing solutions. The IT Team is also responsible for
the managing their various technology vendors along with the Product teams.
3) Sales: They follow a consultative sales approach at CIBIL. If one want to help
their customers find ways to grow their businesses, increase profitability and
reduce costs with the help of CIBIL products then this team is definitely the place
for one. People will get the opportunity to work with and learn from pioneers in
their industry both internally and externally.
4) Finance: The Finance Team is responsible for Financial Reporting and
Controls, Secretarial, Administration and Purchase functions.
5) Human Resources: The Human Resources Team is responsible for the full
cycle of activities which include Talent Acquisition, Talent Management, Talent
Engagement and Talent Retention. Some of their “best in class” human resources
practices have enabled the people to Attract, Nurture, Engage and retain their key
talent. Human Resources are responsible for ensuring Values driven and
Performance based culture. Human Resources Reach-out initiatives inculcate an
Inclusive, Socially Conscious and Healthy Workplace culture which have gone a
long way in building motivated teams to deliver exceptional value.
6) Legal: The Legal Team is responsible for managing all of CIBIL’s new and
existing partnerships with vendors and customers from a Legal standpoint. The
Legal Team ensures that all Legal Queries and Requests are attended to in a

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timely fashion. The Legal Team also ensures that CIBIL’s business processes are
conducted in accordance with statutory regulations.

1.5 AWARDS WON BY CIBIL(ACHIEVEMENTS):

CIBIL has received 2 awards which are given below in detail.

1) NASSCOM Award for best IT driven Innovation for its Direct-to-Consumer

Initiatives:
CIBIL’s Consumer Services process was adjudged the best in its category at the 2013
NASSCOM Awards for ‘the best IT driven Innovation’ for the innovation and efficiency
of its Direct-to-Consumer process which has enabled easier and faster access of the
Credit Scores and Reports for the consumers ensuring customer delight while reducing
costs. NASSCOM has awarded CIBIL for leveraging IT as a ‘value unlocker’ in
achieving synergistic business transformation, process innovation, cost optimization,
process efficiency and customer delight. CIBIL’s IT driven innovations have helped
thousands of individual consumers to access their own Credit Scores and Reports online
and monitor their financial help.

2)HR Award for Practices promoting ‘Quality Work Life’ at the 2014 Asia Pacific HRM
Congress:
CIBIL has been recognized for introducing, implementing and institutionalizing people
practices around ‘Quality Work Life’ at the 2014 Asia Pacific HRM Congress. Their
Human Resources initiatives spanning across the entire employee life cycle from Pre-
Hire to Exit designed to create a healthy and nurturing work environment they were well
appreciated.

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CHAPTER 2: ORGANISATIONAL STRUCTURE

2.1 Technical partners:
• TransUnion International- a leading global credit bureau with presence in over 30
countries.
• Dun and Bradstreet - a leading global provider of credit information and insights
on businesses.

2.2 Shareholding pattern

Entities including TransUnion, leading banks and financial institutions hold a stake in
CIBIL. The details are as follows:-

• TransUnion International Inc 77.1%

• Indian Overseas Bank 5%
• Aditya Birla Trustee Company Pvt Ltd 4%
• Union Bank of India 5%
• Bank of India 5%
• India Alternatives Private Equity Fund 2.9%
• India Infoline Finance Limited 1 %

*So these are the 7 shareholders CIBIL currently has.

2.3 Divisions:

CIBIL houses credit on over 220 million trades across individuals and businesses,
organized into two divisions: - Consumer Bureau and Commercial Bureau. The
Consumer Bureau was launched in 2004 with 4 million records, and now maintains more
than 260 million records. The Commercial Bureau was launched in 2006 with 0.7 million
records, and now maintains more than 12 million records.

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Security standards

CIBIL is ISO 27001:2005 certified- the most recognized security standard in the world.
CIBIL is one of the 1000 companies in the world, which have achieved ISO 27001
certification, and one of the first few in India.

2.4 What is CIBIL’s role in the Loan Approval Process?

CIBIL’s products, especially the CIBIL TransUnion Score and the CIR are very
important in the loan approval process. The credit score helps loan providers quickly
determine, who they would like to evaluate further to provide credit.

The CIBIL TransUnion Score ranges from 300 to 900. The data indicates that loan
providers prefer credit scores which are greater than 750.Once the loan provider has
decided which set of loan applicants to evaluate, it analyzes the CIR in order to determine
the applicant's eligibility. Eligibility basically means the applicant's ability to take
additional debt and repay additional outflows given their current commitments. Post
completion of these first 2 steps the loan provider will request for the applicant's income
proof and other relevant documents in order to finally sanction the loan.

2.5 What this means to one as an individual?

Since, the credit score and CIR not only helps loan providers identify consumers who are
likely to be able to pay back their loans, but also helps them to do this more quickly and
economically. This translates into faster loan approvals.

Until recently, there was little visibility and transparency with regards to the loan
approval process and the elements that loan providers used to evaluate their loan
application. Since, CIBIL has made the credit score and CIR available to people, the
people will be able to see how valuable a customer one are to loan providers.

CIBIL empotheyrs both loan providers and individuals to see their world more clearly
and hence, take better and more informed decisions. All these credit scores, CIR’s etc is
available on the CIBIL’s official website. The consumer or any partner can login and

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download whatever is required. To download, registration in the first place is important.

CIBIL is not like any other financial institutions. It just has a single purpose. The
employees of the same are trained thoroughly before joining the institution. Hence even
they can help their consumers in forming decisions or at least guiding them in a right
way.

2.6 APPLYING FOR A BANK LOAN OR CREDIT CARD?

The score plays a critical role in the loan approval process.

The CIBIL TransUnion Score is a3 digit numeric summary of the credit history which
indicates the financial & credit health. The higher their score, the higher are the chances
of their loan application getting approved. CIBIL Credit information report (CIR) is
provided to one along with their score, because it is the basis on which their Credit Score
is generated. It’s a record of their credit history that is past loans or credit cards availed
from various loan providers who are members of CIBIL. Taking a loan can be a
complicated process for most people. The illustration below indicates what to expect at
every step during the loan evaluation process. It helps understand how the credit
decisioning works in banks and the steps they take before deciding to accept or reject a
loan/credit card.

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The above illustration clearly shows the process which is followed by CIBIL officially. It
also shows the reasons for rejections and approvals. RBI has approved this above
procedure.

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CHAPTER 3: DISPUTES SETTLEMENT

3.1 Disputes and Loan Rejections:
The sanctioning of loan is lengthy but easy procedure. But there are few disputes and
rejections as well.
CIBIL doesn’t maintain a defaulters list. It maintains the credit history of individuals as
reported by Member Credit Institutions. Their loan application could have been rejected
because of their CIBIL TransUnion Score and CIR. The decision to grant a loan is solely
dependent on the credit policy of the Credit Institution. In order to check their credit
history in detail and to identify any possible discrepancies/ errors that might be reflecting
against their name, one can purchase their CIBIL TransUnion Score and Credit
Information Report.
In case of any inaccuracies in the Credit Report, one can raise a dispute with CIBIL to
rectify them.

Company Disputes
CIBIL Company Credit Information Report (CCR) consists of Company Details E.g.:
Address, Contact etc., Account Information and Enquiries. If any information on their
CCR is inaccurate or needs to be updated, they shall be pleased to assist one in rectifying
/ updating their report. To raise a dispute online, click on the link provided at the bottom
of the page. This process is known as Company Dispute Resolution.
Dispute request can be raised based on Company Credit Information Report (CCR)
purchased by the consumer from CIBIL or CCR pulled by the Credit Institution. Go
through the types of dispute enlisted below to understand the various inaccuracies that
can be corrected.

Individual Disputes
In case of individual disputes, as they know that the CIBIL does not maintain any
defaulters list, it just maintains all types of records, hence the individual has to report it in
case of any fraud. The easiest way to initiate a dispute request is by submitting a duly
completed On-Line Dispute Form. Alternatively, one can raise a Dispute Request by
writing to us at the following address: Credit Information Bureau (India) Ltd, Hoechst

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House, 6th Floor, 193, Back bay Reclamation Nariman Point, Mumbai 400021. This
is in case of both companies as well as all the individuals.

3.2 TYPES OF DISPUTES

1.COMPANY / ACCOUNT DETAILS

One can dispute various fields in their company’s CCR. For example : Company Details
like Company Name, Address, Company Phone number, Company PAN Number etc and
Account Details like Credit Type, Asset Classification, Sanction Amount etc just to name
a few.

2.OWNERSHIP
One can also raise a dispute for Ownership of an Account. The term Ownership of an
Account means that a particular account in their company’s CCR does not belong to one
or the entire report is inaccurate.

3. Duplicate Account
if the same account reflecting more than once in their CCR, one can initiate a request for
correction.

Dispute can be raised for the following:

Company Details:

• Company Name
• Company’s Registered Address
• Company’s Branch Address
• Telephone Numbers
• PAN (Company)
• Promoter/ Director/ Proprietor/ Partner Name
• Relationship
• Legal Constitution
• City
• State
• PIN Code

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Account Details:

• Credit Type
• Asset Classification
• Sanction Date
• Sanctioned Amount/ High Credit
• Current Balance
• Bank Remark
• Status
• Date Classified as Willful Defaulter
• Suit Filed Status
• Date of Suit and Suit Amount

Report Order Number & DUNS No.

• Report Order Number – Order Number assigned to the Company CIR by the
CIBIL system.
• DUNS Number – D-U-N-S Number is a unique identification Number provided
by CIBIL to every Borrower, at a particular location.
One can now raise an online dispute for any data inaccuracy reflecting in their report. All
fields can be disputed in their report, except the following fields:
• Control Number
• Member Name (Unless it is an Ownership Dispute)
• Account Number (Unless it is an Ownership Dispute)
• Date Reported
• Enquiry Date
All the details mentioned above are required to raise a dispute either by an individual or
any company. After the collection of all the details only the CIBIL takes any kind of
action. Once a request has been registered, CIBIL checks whether all the requisite details
have been provided. CIBIL routes the dispute to the concerned Credit Institution (CI).
Once the CI confirms the error and provides the correct data, CIBIL then updates the
report and informs one accordingly.

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DISPUTE OF CREDIT REPORT ONLINE:

Credit Information Report (CIR) plays a large part in the loan application process. Hence,
any discrepancy in their CIR may result in reduced chances of a loan approval. Therefore,
it is important that the information on their CIR is accurate and updated. A dispute
request can be raised based on either a CIR purchased by one directly from CIBIL or a
CIR accessed by the Credit Institution (CI) with whom one have applied for a loan. The
CIR consists 5 sections namely Personal Information, Contact Information, Employment
Information, Account Information and Enquiry Information. If any information on their
CIR is inaccurate or needs to be updated, they will assist one in doing so.

3.3DISPUTE RESOLUTION PROCESS

Individuals or companies, who have raised a dispute, will get an email notification from
CIBIL informing them of the status of the dispute request. If their dispute is accepted and
dispute information is updated, CIBIL will send their updated report. Once CIBIL gets
the corrected data from the Credit Institutions (CI), it updates their records. Once CIBIL
gets the data from the Credit Institutions (CIs) it takes 7 days for it to be updated in their
database. 7 days is the maximum time required.

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SOLUTIONS BY NEED: (BUREAU)

➢ Portfolio review reports:

Portfolio reviews are a significant way for banks and financial institutions to monitor,
manage, and act upon their portfolio credit risk and enhance overall portfolio returns.
Beyond this, they can deepen account holder relationships and build the foundation for
loyalty and continuing business growth.

Benefits:
• Account Management
• Better risk quantification
• Improved Trend Monitoring
Whether it is their individual customers or business clients, conduct a portfolio review to
optimize their portfolio performance, and implement strategies to retain and deepen
relationships with their key customers.

➢ CIBIL’s Trade Union Score:

India’s first credit scoring model that helps effectively predict the likelihood of an
applicant becoming more than 91 days delinquent on one or more tradelines over the
subsequent 12 months. This considers all trades (secured & unsecured) of a borrower for
scoring.

➢ CIBIL Trade Union Bureau and Credit Characteristics:

Bureau Credit Characteristics is a list of predefined characteristics that summarize
various aspects of a customer’s credit information. The set comprises multiple credit
characteristics which can be used for model development, data analysis, customer
profiling, migration analysis and a variety of other account management analyses.

➢ CIBIL Detect:
Reduce risk in their current portfolio and in assessing new applicants with CIBIL
Detect—India’s first repository with information on High Risk Activities contributed by
leading lenders. CIBIL Detect provides one with an easy and cost-effective way to access
and share information on high-risk activity at account acquisition and in ongoing
portfolio management to make more informed decisions and improve profitability.

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➢ CIBIL Mortgage Check:

CIBIL Mortgage Check—the first centralized electronic database on mortgages in India
is supported by the NHB. The repository uses a sophisticated match logic customized
for Indian market to help one share and access mortgage information, exercise stronger
due diligence, and reduce fraudulent transactions due to multiple financing. It helps one
make more informed decisions in assessing new mortgage applications and managing
their current portfolio—an easy, consistent and cost-effective way to access and share
mortgage information.

All these above things come under CIBIL’s Portfolio Management.

➢ CIBIL Locate Plus:

CIBIL Locate Plus leverages CIBIL’s vast and comprehensive information repository
to provide with comprehensive contact information on customers in a faster and more
cost effective fashion. Highly effective for collections & contractibility programs.

➢ Consulting Services:
Their analytics and decisioning team consults with clients at every stage of their
customers’ lifecycle—from acquiring customers to strengthening and expanding
relationships with them. With a deep understanding of their business, they can offer
one the right tools to mitigate risk and derive maximum value from their customers.

➢ Market Sizing and Competition Benchmarking Reports:

Now identify the market potential more accurately by obtaining customized reports
from CIBIL and TransUnion Utilizing the strength of advanced analytics and their
large credit information database, they provide one with customized reports basis
their needs. If one is targeting a new market CIBIL reports can help one size specific
markets and gain more insights in business potential and customer demographics.
Their customized competition benchmarking reports help one stay ahead of
competition. Leverage their data intelligence and reporting services to carve out
strategies, identify new markets and maximize their business growth and profitability.

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Other things such as CIBIL’s TransUnion score as well as personal loan score
and Bureau Credit characteristics are also included in Collections Management.

Industry Trends:
➢ Market Insights:
Now identify the market potential more accurately by obtaining customized reports from
CIBIL and TransUnion Utilizing the strength of advanced analytics and their large credit
information database, they provide one with customized reports basis their needs. If one
is targeting a new market CIBIL reports can help one size specific markets and gain more
insights in business potential and customer demographics. Their customized competition
benchmarking reports help one stay ahead of competition. Leverage their data
intelligence and reporting services to carve out strategies, identify new markets and
maximize their business growth and profitability.

➢ CIBIL Consumer Credit Information Report:

CIBIL Consumer Credit Information Report (CIR) provides information on credit
histories of borrowers to make objective lending decisions. With CIBIL Consumer CIRs
credit grantors are equipped to gain insights into a consumer’s overall borrowings across
lending institutions, identify risk areas, disburse credit faster and with greater efficiency
and grow business profitability. The credit information is based on the millions of updates
received by CIBIL from its strong member base comprising of Banks, Financial
Institutions, State Financial Corporations, Non-Banking Financial Companies, Housing
Finance Companies and Credit Card Companies.

➢ CIBIL Company Credit Information Report:

CIBIL Consumer Credit Information Report (CIR) provides information on credit
histories of borrowers to make objective lending decisions. With CIBIL Consumer CIRs
credit grantors are equipped to gain insights into a consumer’s overall borrowings across
lending institutions, identify risk areas, disburse credit faster and with greater efficiency
and grow business profitability. The credit information is based on the millions of updates
received by CIBIL from its strong member base comprising of Banks, Financial

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Institutions, State Financial Corporations, Non-Banking Financial Companies, Housing

Finance Companies and Credit Card Companies.

Custom Solutions:
➢ Custom Scorecards:
Scorecards can be crucial in helping one improve their portfolio performance at every
stage of customer lifecycle. They provide one with the expertise to build acquisition,
behavioral, or collections scorecards basis their business needs. Leverage their data along
with the strength of data from CIBIL to build scorecards which can accurately and
powerfully predict their customer’s behavior thereby helping one drive efficiencies and
maximizing portfolio profitability.

➢ Decisioning Services:
Leverage their decisioning services to make decisions with greater accuracy, consistency
and predictiveness. By applying sophisticated analytics, scoring and models to multiple
data, their decision center can streamline and standardize time-consuming business
processes, and help one reduce risk and increase profits. Their decision center also
integrates with the credit bureau for facilitating consistent decision-making across various
stages of their customer’s lifecycle- including underwriting optimization at the time of
customer acquisition, collections management and prioritization.
Consulting services and market sizing benchmarking reports are also included in the
“Industry Trends”

SOLUTIONS BY INDUSTRY:

1. Financial Institutions:
1. CIBIL Consumer Credit Information Reports
2. CIBIL Company Credit Information Reports
3. Portfolio Review Reports
4. CIBIL TransUnion Score
5. CIBIL TransUnion Personal Loan Score
6. CIBIL TransUnion Bureau Credit Characteristics
7. CIBIL Detect

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8. CIBIL Mortgage Check

9. Market Insights
10. CIBIL Bureau Analyzer
11. CIBIL Locate Plus
12. Consulting services
13. Custom Scorecards
14. Market sizing and Competition benchmarking reports
15. Decisioning services

2. Microfinance Institutions

1. CIBIL Consumer Credit Information Reports

2. CIBIL Company Credit Information Reports
3. Portfolio Review Reports
4. CIBIL TransUnion Score
5. CIBIL TransUnion Personal Loan Score
6. Market Insights
7. CIBIL Bureau Analyzer

3. Insurance

1. CIBIL Consumer Credit Information Reports

2. CIBIL Company Credit Information Reports
3. CIBIL Locate Plus
4. Portfolio Review Reports
5. Consulting services
6. Custom Scorecards
7. Decisioning services

4. Telecommunications

1. CIBIL Consumer Credit Information Reports

2. CIBIL Company Credit Information Reports

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3. Portfolio Review Reports

4. CIBIL TransUnion Score
5. CIBIL TransUnion Bureau Credit Characteristics
6. Market Insights
7. CIBIL Bureau Analyzer
8. CIBIL Locate Plus
9. Consulting services
10. Custom Scorecards
11. Market sizing and Competition benchmarking reports
12. Decisioning services
All the above mentioned things come under the Bureau Solutions of CIBIL. These are the
important parts of CIBIL. It helps CIBIL to maintain economic balance and stability in
the country.

What is Credit Repair?

Credit Information Report (CIR) plays a large part in the loan application process and
hence a score can impact their chances for a loan approval. So if one have had a bad
credit history and one want their CIBIL TransUnion score to improve then it is very
important to understand the options that one have. Going to a “credit repair” company
and paying a large sum of money may not be the best solution. CIBIL is not associated
with any credit repair company.

3.5 CREDIT FACTS:

• A credit repair service cannot remove or edit any information in their CIBIL credit
information report directly.
• If one authorizes a credit repair company to apply for a credit information report
on their behalf they will (to ensure confidentiality) send the report to their email
address provided or home address. Their credit information is confidential
information and should not be shared freely.
• One can opt for CIBIL’s online dispute resolution process free of charge.
• They cannot make any changes in their credit report directly. The respective bank
or financial institution should authorize us to make the changes.

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Usually, there are 2 major issues with a CIR:

• Inaccurate information reflecting on the CIR and,
• Defaults on the payment caused either due to :
o Genuine financial hardship
o Missed payments on credit cards due to relocation internationally/
domestically
o Missed payments on non-receipt of statement
o Disputes with the lender on account of charges or annual fees
o Disputes with the lender on account of fraud
Before they proceed to suggest a course of action, it is important to understand and go
through their credit report in detail.

FOLLOW THE BELOW STEPS:

1. BUY SCORE
2. CHECK CREDIT REPORT
3. INITIATE ACTION
Individuals or companies can buy their CIBIL TransUnion Score and Credit report. It
costs only 500/- and they can have access to the credit report within 3 business days.

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CHAPTER 4: CIBIL’s CODE OF CONDUCT

4.1 CIBIL’s Code of Conduct:
Philosophy of Corporate Governance

CIBIL prides them for being a “Catalyst in making informed credit decisions which
would enable growth of Credit at better terms”. They would like to be known as a
Company that maintains very high standards of Ethical Integrity and Fairness while
keeping total focus on Performance, thus contributing to the overall wellbeing of all their
stakeholders including Customers, Shareholders, Employees, Vendors, Community and
the Government.
Their Corporate Governance philosophy envisages attainment of the highest levels of
Integrity, Accountability, Performance, Ethical Behavior and Equity in all facets of their
Operations. They believe that the practice of each of these elements will create the right
corporate culture, their employees and ensure sustainability of their Operations.
They have an independent and informed Board of Directors (and its Remuneration and
Audit Committees) at the core of their Corporate Governance practice. They oversee how
the management and all employees serve and protect the long-term interests of all their
stakeholders. Their employee’s actions are governed by their "Code of Conduct & Ethics
Policy" as enumerated below.

CIBIL’s Code of Conduct & Ethics

They in CIBIL believe that good business practices and ethics go together to produce best
long term results for all their stakeholders. They take their responsibility and reputation
as a good corporate citizen seriously.
They are proud of their values and their effect on how they do their business. This Code
of Conduct & Ethics Policy sets forth legal & ethical standards that apply to all
employees of CIBIL.
The purpose of this document is to articulate the high standards of honest, ethical and law
abiding behavior expected of every employee and encourages the observance of these
standards to protect and promote the interests of all stakeholders.

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They would implement this Code over a period of time, starting with an internal
implementation as a first step. All employees are expected to follow this code fully and
are encouraged to report any non-observances.

4.2 Standards for Conduct of Business Ethical and Honorable Conduct:

All employees shall deal on behalf of the Company with professionalism, honesty,
integrity as high moral and ethical standards. Such conduct shall be fair and transparent
and be perceived to be as such by third parties.
Employees are expected to deal with other colleagues in an honorable and respectful
manner, without any gender bias / harassment. All employees, vendors and service
providers should be selected on merit, without any conflict of interest or favoritism.
Appropriate disclosures should be made wherever required to maintain transparency.
• Legal / Regulatory Compliance
All employees shall at all times ensure compliance with all the relevant laws and
regulations affecting operations of the Company. They shall keep abreast of the
latest developments in relevant laws, rules and regulations related to their area of
work.
• Fair Dealings and Equal Opportunities
CIBIL respects human rights and encourages fair dealing (nondiscriminatory)
across all levels and to all stakeholders. There shall be no discrimination on
grounds of race, religion, gender, place of origin or caste. Accordingly, the
Company expects each employee to deal fairly and with equality with other
employees, customers, shareholders, suppliers, competitors, auditors, lawyers,
creditors and advisers of the Company and encourage others to do the same.
• Business Interests
An employee shall not engage in any business, relationship or activity, which
might conflict with the interest of the Company. All are expected to devote full
attention to the business interests of the Company, and are prohibited from
engaging in any other activity that interferes with their official performance of
responsibilities to the Company or is otherwise in conflict with or prejudicial to
the Company.

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• Transparency
All employees shall ensure that their actions in the conduct of business are totally
transparent except where the needs of business security dictate otherwise. Such
transparency is brought about through appropriate policies, systems and processes
which they are expected to follow fully.
• Company Resources
All the assets of the Company (both tangible and intangible) shall be deployed for
the purpose of conducting the business for which they are duly authorized for.
None of these should be misused or diverted for any personal commercial use or
benefit, unless such use is allowed under the terms of employment.
• Intellectual Property Rights
All inventions and innovations during course of business should belong to the
Company. These include new products, processes, services that get developed
while working on various assignments. Every employee should take precaution to
prevent any loss of such IP rights, by keeping things confidential & safe and
reporting to Legal Manager for applying for Patent, Trademark and Copy Rights.
• Corporate Opportunities
All employees should ensure that Company does not lose any benefit accruing to
it by negligence or delay in action. Any benefit accruing to the Company should
be used only for Company purposes. There should not be any direct personal gain
arising out of it. However, in specific instances where there are some indirect
benefits accruing to employee(s), specific approval should be obtained or granted.
• Cost Consciousness
All employees are expected to strive for optimum utilization of available
resources. They shall exercise due care to ensure that all costs incurred are
reasonable and there is no wastage of resources. Every time a cost is incurred,
proper evaluation of such cost vs. benefits should be done, as if the expenditure
was being incurred for self. Proper approvals as per Company policies should be
taken before any costs are committed.
• Company Records

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The Company records should be maintained in such a way that they are in full
compliance with all rules, laws and regulations. Adequate precautions should be
taken to protect them from falling into wrong hands, which could harm
Company’s business interests. They should be kept up to date and free from any
misleading or wrong information. Important records should be stored in a safe
place and properly marked.
• Confidentiality
Employees come across a number of confidential information which may take
many forms. They must take proper care of such information and ensure that it is
not misused in any way which is detrimental to the Company’s business or used
for own commercial benefit. They must also not disclose actions or activities
relating to their business operations to outsiders, unless they concern or impact
them.
Employees who have access to proprietary and confidential information must take
precaution to keep it confidential. Information should be disclosed on a NEED TO
KNOW basis to people who need to know such information. The Company has
procedure for entering into confidentiality agreements with various vendors,
which shall be executed before any information is shared with them.
An employee is expected to accept only such information that is necessary to
accomplish the purpose of receiving it, and not for any other purpose.
• Products and Advertising
All products should be of promised content and quality. Advertising should be
within law and shall be honest.
• Company Reporting and Communications
All information reported or communicated by the Company should be factually
correct, complete and accurate. Proper cautionary statements shall accompany
wherever necessary, to avoid any misunderstanding or any unintended harm.
• Interaction with Media

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 CIBIL

Only MD and persons officially designated for such interactions should engage
with any member of press and media in matters concerning the Company. Any
requests for interaction should be directed to such authorized person.
• Competition
CIBIL believes in fair and ethical competition. No employee shall use any illegal
or unethical means to obtain any information about competition or to take any
business from competition by any misrepresentation or by giving wrong facts to
the customer(s).
• Community Activities
In order to ensure fairness and avoid any adverse impact on business, all
community activities under CIBIL name shall be properly authorized before they
are undertaken by any employee. Such activities should be unbiased, should not
be related to promoting any religion and shall not harm any business interests of
the Company.
• Government Support and Taxes
CIBIL is committed to be an honest citizen. All employees are expected to
provide full support to any Government initiatives, investigations and compliance
requirements. All due taxes shall be computed properly and paid on time. Proper
disclosures should be made wherever there is lack of full clarity and an opinion is
formed.
• Political Contributions
CIBIL believes in fairness and equality. In order to avoid any conflicts and
political alignments, CIBIL shall not participate in any political activities or
contributions.
• Gifting and Entertainment
CIBIL and its employees shall neither receive nor offer or make, directly or
indirectly, any illegal payments, remuneration, gifts, donations or comparable
benefits that are intended, or perceived, to obtain uncompetitive favors for the
conduct of its business. The employees may however accept and offer nominal
gifts during course of the business, provided such gifts are customarily given and

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 CIBIL

are of a commemorative nature, such as Diaries, Calendars and other Stationary

items. Employees may also attend and take others out for normal or customary
business lunch, dinner and functions. These should however not impact or
compromise objectivity and fairness of an employee to take Company decisions.
• Health, Safety and Environment
CIBIL shall strive to provide a safe, healthy, clean and ergonomic working
environment for its people and guests who visit it. It shall also strive to prevent
any wasteful use of natural resources (incl. water) and is committed to help in
improving the environment. Wherever feasible it will reduce, replace, recycle or
regenerate articles consumed in its operations.
• Foreign Corrupt Practices Act
During performance of their duties and responsibilities, one should not use
agreements with consultants, brokers, sponsors, agents or other intermediaries to
channel payments to any person or persons, including public officials, customers
or employees, and thereby circumvent the provisions of FCPA or local anti-
bribery and corruption laws, the company's policies regarding bribery and
corruption.
One should strictly comply with the US Foreign Corrupt Practices Act, 1977
(FCPA), Prevention of Corruption Act, 1988 (PCA) and all applicable Anti-
Bribery and Corruption statutes and regulations, to the extent of the applicability
of the acts to CIBIL along with compliance with CIBIL’s ABC and Gift and
entertainment policy. Compliance with these laws requires strict adherence to
standards for payments to government officials, political contributions and
company records.
One shall report inappropriate demands from government officials. A record of
such demands and payments resisted may be kept and reviewed by senior
management to develop approaches to tackle such situations.

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• Anti-Sexual Harassment
Credit Information Bureau (India) Limited (“CIBIL”) is an equal opportunity
employer and is committed to providing a productive work environment not only
to its employees but also to all other persons associated with it. It is CIBIL’s
policy to maintain a work environment free of harassment, intimidation, threats,
coercion or discrimination (whether based on gender, pregnancy, childbirth or
related medical conditions or based on a person’s race, color, disability, age,
religion, national origin, sexual orientation or any other characteristic protected by
law) in recruitment, training, promotion, and other terms and conditions of
employment/ working.
The Company strongly disapproves of, and shall not tolerate harassment (whether
sexual or otherwise) of employees by managers, supervisors or co-workers,
subordinates, vendors or non-employees (retainers, freelancers, vendor
employees, consultants, contract employees etc.) with whom the Company has a
business, service or professional relationship.

4.3 CIBIL And Society:

CIBIL believes in keeping the overall well-being of the society at the core of their values
and purpose. For us, Corporate Social Responsibility and Sustainability are not mere
obligations but are vital pillars of their continual success.
Their core value of Sustainability is aligned to taking “utmost care of society” by creating
awareness about the less privileged and encouraging the practice of “Giving
Back”.CIBIL’s community investment is focused on the core theme of “Educating the
girl child”

4.4 OBJECTIVES:
The main objectives of CIBIL’s CSR policy are:
• To create self-sustained improvement in the life of a “girl child” by facilitating
continued education
• To encourage employees to contribute in terms of both efforts / time and
monetarily
• To generate a feeling of goodwill among employees as well as stakeholders

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Arun Thukral, Advisor, CIBIL, Board of Directors says, “If a child receives an education,
their life changes. Education is prerequisite for a changed life. I was very keen that if they
can even change one girl’s life, they would have been doing their job. That’s where this
came from.” Arun champions heavily for the education of India’s marginalized oneth,
especially girls. Citing India’s historic male – preference and his desire to combat it, Arun
firmly believes that the effects of CIBIL’s transformative philanthropic efforts will
extend further in the years to come and believes that “If the mindset of a woman changes,
it will change the world.”

4.5 VOLUNTEERING:
CIBIL also encourages its employees to participate in philanthropic and social initiatives.
• Monetary Contribution at an organizational level and Employee Payroll
Giving:
CIBIL has endeavored to contribute financially to a cause / causes it deems fit.
Voluntary monetary contribution made through the employee Payroll. The
employee can decide the amount as well as the area towards which they would
like their contributions to be made to.
• Employee Volunteering:
As creating socially conscious and contributing citizens is the underlying
objective of the CIBIL CSR agenda, all CIBIL employees are eligible to take
“One Man-Day” in a financial year to contribute time and efforts to volunteer at
NGOs of their choice or at an NGO that CIBIL is contributing to.

CSR:
CIBIL supports the education of the girls from marginalized backgrounds living in slum
areas in and around Mumbai in association with NGOs Muktangan and Community Aid
and Sponsorship Program (CASP)

Muktangan
Girls coming from low income families living nearby aged 4 to 14 years from municipal
schools leaving nearby are admitted. It is a unique model the teacher is from the
community.

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CASP

Education of girls aged 4 to 14 years from slum areas in Bhandup (suburb in Mumbai) is
sponsored. The program is integrated with the municipal school systems.
CIBIL is also supporting the education of the girl child from the Katkari Tribe in
association with NGO VidhayakSansad.

VidhayakSansad
Education of girls aged 4 to 14 years belonging to Katkari Tribe (with literacy rate of less
than 1%) is sponsored. Most of them are getting their first opportunity to learn to read
and write.

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CHAPTER 5: INTERNAL WORKING OF CIBIL

5.1 Life At “CIBIL”:

GROWTH: -
CIBIL counts on their employees to drive the growth of the organization while providing
them with the opportunity for developing great careers. Their core aim is to be the
“Employer of Choice”, to attract and retain the most talented individuals by providing
them with a platform to nurture and enhance their skills.
They also ensure that their people are well rewarded for exemplary performance,
exceptional contribution and making a difference. Career progression is based on merit
and potential. They give each of their employee’s equal opportunity to grow in their
preferred areas to hone their skills and take up new and challenging jobs.

a) Job Rotation: An individual is moved through different types of tasks /

functions in order to increase interest and motivation and give him or her
exposure to the entire operation. Job rotation is also practiced to allow qualified
employees to gain more insights into the processes of a company and to increase
Job Satisfaction through job variation.

b) Special Projects: Employees are given Special Assignments / Projects to work

on to enhance their skills. These assignments can be at Project / Department level
or Organizational level.

5.2 NURTURING TALENT:

1. At CIBIL, talent is a key component of their business strategy. They believe, their
people create their success.
2. The CIBIL Philosophy of Recognizing Potential and Rewarding Performance go a
long way in not only engaging the talent force but also in setting the right
behavioral expectations.
3. At CIBIL they maintain a structured professional and personal development plan
for each employee, which is reinforced through training, on-the-job experience,
coaching and mentoring programs.

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4. A detailed exercise to assess the potential of talent with the objective of growth is
undertaken. Each CIBILIAN is assessed objectively and all development needs
collated. The Learning Calendar is specially designed taking into account cultural,
behavioral and functional needs. Every CIBILIAN (100%) receives specific
trainings through the year - a high benchmark!
5. Top Talent interventions in premier management institutions also forms a part of
the Organizational Development interventions.

5.3 VARIOUS TRAININGS: -

1) Role Based: These training needs will be decided between the Head of the
Department and the Individual
2) Behavioral: These training needs for every employee shall be closed by the
Head of Human Resources and the Head of the Department in the talent
identification exercise every year.
3) The Annual Training Calendar is prepared in the month of May every year and
follows a May to April cycle.
4) The Calendar caters to the training needs of individuals, departments and
organization for developing the Skills, Knowledge and Process abilities needed to
perform the organization's business activities.

5.4 Work Life Balance:

CIBIL’s employees receive best-in-class benefits that are highly competitive.

Flexible Work Hours -At CIBIL, they recognize the importance of having a
balanced work life. They team members to finish their work during the “eight hour” day
and discourage either late sitting or taking work home. Their attendance policy is also
designed to ensure a CIBILIAN is able to ensure his / her work time is not impacted by
any personal requirements

Health and Wellness -They offer regular executive health check-ups for all
employees. Periodic Health and Wellness sessions are scheduled. A clinical psychologist
has been empanelled who is available every fortnight for the employees

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Professional Membership Programs - Employees are given opportunities to

develop their skills through Professional Membership and Education Benefits Program at
CIBIL and various workshops. Individuals can opt for courses that would help them in
enhancing their skills. Employees will be entitled to reimbursement of Annual
Membership Fees of two Professional Educational Institutions where they have
professional memberships as per eligibility.

Education Benefits Programs -CIBIL supports continuing education. Each

employee can choose to do part time courses. A part of the total fee of pre-approved part
time courses is reimbursed on completion of each phase

Care - Connecting Hearts and Minds of its team members is important. It is equally
important to build a relationship with the family members of their team members. Every
year the “Family Day” is a red-letter day when they welcome family members of all ages
to their office premises. Fun activities, contests followed by a grand lunch are a part of
the day.

Their employee policies are designed keeping in mind the Care element. Flexible
Working Hours, Education sponsorship, Medical and other Benefits have gone a long
way in engaging the team members at CIBIL. Career Counseling and Industry experts
giving CIBILIANs an outside perspective as a part of grooming also forms a part of the
agenda.

Communication:

CIBIL believes in the power of open communication.

Here, employees are encouraged to share their ideas and inputs, information is shared
freely and conflicts are openly discussed and worked through. The 2-way communication
culture leads to contribution of ideas and suggestions towards incomparable business
growth. CIBILIANs are updated with Relevant, Timely and Accurate Communication
through various mediums.

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 CIBIL

There are also a lot of celebrations that take place in CIBIL. Such celebrations encourage
the employees in every aspect.

“Celebrate what one wants to see more of.”

Celebrating forms a large part of life at CIBIL. Occasions big and small are celebrated
with fervor and CIBILIANs are encouraged to participate.

These events are a part of the “Esprit” – the Events Calendar which is designed and
rolled out at the beginning of the year.

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CHAPTER 6: MEMBERSHIP IN CIBIL

6.1 Become a member:
CIBIL’s vast repository of credit information augments their credit underwriting and
portfolio management efforts. Members have access to consumer and company Credit
Information Reports, Credit Scores and a host of value added tools that help them
constantly monitor their portfolio; right from acquisition to collections stage. CIBIL
Members benefit by an increased ability to identify lending opportunities and keep non-
performing assets in check; thus strengthening the basic foundation for business success.

6.2 Benefits of Membership:

Risk Management solutions from CIBIL offers other benefits as well:-

• Objective Credit Decisions– a shift from relationship-based to information-
based lending leads to accuracy in providing lending terms that suit a consumer’s
payment track record and ability to take on additional leverage while mitigating
the consequences of adverse selection

• Faster Credit Decisions – Enhances a credit institution’s ability to expand

while maintaining credit portfolio quality

• Speed and Cost – Use of CIBIL CIRs will make processing of home loans
faster and cheaper by eliminating the need to additionally research and verify
borrower details. This will result in improved profit margins due to lower cost of
processing.

• Differential Pricing – Members can differentiate between good borrowers

and defaulters. In an increasingly commoditized credit market, credit grantors will
be able to use price in order to differentiate their loan products.

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 CIBIL

Regulatory Compliance:

• Moreover, becoming a Member of a credit information bureau ensures their

organization’s compliance with the Credit Information Companies (Regulation)
Act 2005. The Act stipulates that all the credit institutions including NBFC’s,
banks and other financial institutions should be a member of a Credit Information
Bureau.

6.3 Membership Eligibility & Process:

Eligibility:
CIBIL Membership is available to the following institutions:
• Credit Institutions (banks, RRBs, Co-operative bank , NBFC, Public Financial
Institution, Housing Finance Institution etc. companies engaged in the business of
credit cards and other similar cards and companies dealing with distribution of
credit in any other manner or any other institution which the Reserve Bank
may specify, from time to time, for this purpose)
• Insurance Companies
• Companies providing cellular or telephone services
• Credit Rating Agencies
• Asset Reconstruction Companies
• Telecom Companies
What is the process to become a Member of CIBIL?
• The potential Member will need to provide a single point of contact for CIBIL (a
nodal officer).
• The nodal officer will need to submit:
o Self-attested (signed by an Authorized Signatory and stamped) audited
financial statements for the most recent financial year (Balance Sheet &
P&L Statement or Annual Report)
o Self-attested Certificate of Registration from the appropriate regulatory
authority (Reserve Bank of India, National Housing Bank, Government of
India, etc).

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 CIBIL

The physical copies can be couriered to the address of Credit Information Bureau
(India) Ltd.

• Once documentation is complete they provide one with the costs associated.
• Upon completion of all the formalities CIBIL will provide one with a "Member
Kit". The Member Kit will provide one with vital information that will help one
begin using services.

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 CIBIL

CHAPTER 7: USE OF CIBIL IN BANK LOANS

7.1 Post reflection:
Here is a checklist of things one must ponder over once one have elevated their credit
score to 750 or more-
• Keep balances low on their credit cards
• Make timely repayments towards their credit cards and loans
• Maintain a healthy mix of secured as well as unsecured credits
• Make wise choices in future loan applications
Corrective measures can improve their credit score as it is not set in stone. Always
maintain a good CIBIL score as it proves one are creditworthy. Not just banks and
financial institutions but employers also check credit scores of their future employees.
Hence, it would hold one in good stead to keep a constant tab on their credit scores and
make sure their financial behavior always results in the maintenance of high scores on
their Credit Information Report.
Now let’s compare 2 banks and their requirements for the CIBIL score for a home loan.
The two banks which they are taking into consideration are State Bank of India and
HDFC bank. Some of the major required fields are seen and studied.

7.2 CIBIL Score Required for SBI Home Loan

Why do one need a good CIBIL score to apply for SBI home loan?
There are several reasons why a good CIBIL score is an advantage for SBI home loan:

• A good CIBIL score above 750 will ensure that their home loan is approved
quickly without any hassles.
• A good CIBIL score might get one lesser interest rates.

• More loan choices.

• Opportunity to negotiate.

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 CIBIL

CIBIL score for Home Loan:

Home loans are granted for individuals to purchase or build a house. The property is
mortgaged to the lender until the loan is repaid completely. Besides their eligibility and
ability to repay the loan, CIBIL scores are one of the most important parameters
considered by lenders while granting home loans. A good credit score will ensure one get
approved for a new housing loan without any hassles. Banks and credit institutions use
information gained from CIBIL scores to determine if the applicant is eligible and
reliable enough to avail the loan.

SBI Home Loan:

State Bank of India is an Indian public sector bank and financial service company. It has
a 20% market share in loans and deposits among Indian commercial banks. SBI offers a
range of personal loans, home loans, auto loans and other kind of loans.

SBI offers home loans at attractive interest rates. It has different home loan plans to suit
the needs of its customers. Listed below are the home loan plans offered by SBI.

Documents required for SBI home loan:

• Proof of identity
• 3 passport size photograph
• License
• Proof of residence
• Bank account statement
• Completed loan application
• Property tax receipt
• Personal Assets statement
• IT PAN card
• Original salary certificate from employer
• TDS certificate on Form 16

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 CIBIL

Benefits of SBI Home Loan:

There are a lot of reasons to choose an SBI Home loan. Listed below are some of the
benefits.

• Attractive interest rates.

• Loan amounts up to Rs.10 crore.
• Home loans for rural residents.
• Home loan for NRIs.
• Easy loan approval process.
• Easy documentation.

It is very important to maintain a good CIBIL score to ensure that one can avail the SBI
home loan without any complications and enjoy the benefits offered by SBI home loan.

7.3 CIBIL Score Required for HDFC Home Loan:

CIBIL Scores are used by banks or lenders to check the creditworthiness of loan
applicants or borrowers. A CIBIL score of 750 and above is considered to be very good.

HDFC, just like any other lender, checks applicants’ scores from the Credit Information
Report (CIR) developed by CIBIL. Based on the credit score they decide if the applicant
should be granted a loan. If the credit score is low, the bank can still grant one loan at a
higher rate of interest depending on the information available in the applicant’s credit
information. The more creditworthy one are, the less a negative score affects their
chances of being approved for a loan. HDFC checks their eligibility based on their gross
monthly income, loan tenure and the rate of interest and if the applicant has other EMI’s
outstanding.

Types of Home Loans offered by HDFC

Housing Development Finance Corporation (HDFC) as the name suggests provides
housing finance as its core business. HDFC is the leading provider of Housing Finance in
India. Though they have diversified to cater to different needs through the different

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phases of one’s life, the focus is mainly on housing. It has fulfilled 4.9 million dreams
over the last 3 and half decades.

HDFC provides home loans starting at an attractive interest of 9.90% p.a. (subject to
change) whereby EMIs can be as low as Rs.871 per lakh (subject to conditions). HDFC
offers the following types of home loans. Indian Residents are offered home loans for the
following purpose:

• To buy a new house or a flat and bungalow from developers.

• HDFC also lets one purchase resale homes that suit their requirements.
• To construct their own home
• To transfer outstanding home loan balances from other banks to HDFC to avail
the benefit of paying low monthly installments, customized repayment options
and attractive interest rates.
• To renovate or upgrade homes, HDFC offers Home Improvement Loans.
• To extend houses, HDFC offers Home Extension Loans.
• To buy a plot of land, HDFC offers Plot Loans.
• To individuals who have set their eyes on a new house but have to wait till the old
house is sold to make the payment, the HDFC bank offers Short Term Bridging
loans to provide funds required to purchase the new house until the old house is
sold.
• To agriculturists who wish to own a house in the rural or urban area, HDFC offers
Rural Housing Finance. Salaried and self-employed persons can also avail this
loan if they wish to own a space in their hometown that is in these areas.

NRI’s also can avail home loans from HDFC to own their own space in India. So,
applicants need to keep track of their CIBIL score and check how worthy they are to the
lenders. Applicants, at all times, must try and keep their credit score as high as they can.
They can do so by never being late in making their payments and by keeping a balance
between the secured and unsecured loans. If a good CIBIL score helps applicants avail

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home loan from HDFC, a leading lender in India, it stands to reason that future credit will
also be easy to avail from HDFC or other lenders.

Skipping Payments Can Affect Credit Score:

An individual’s CIBIL score is derived from data submitted regularly by various banks
and financial institutions. As such, maintaining a good CIBIL score is not an easy task.
Any slip on their part while repaying credit can have drastic effects on their overall
CIBIL score.

Though there are various underlying principles when calculating CIBIL score, loan EMIs
and credit card bills form the backbone of the calculations. Credit scores are calculated
on the basis of complicated algorithms, and emotions do not figure in the formulations.
Missing on payments for any reason whatsoever can adversely impact their credit score.

CIBIL Score Limits:

The Credit Information Bureau (India) Ltd is the credit rating agency that provides CIBIL
reports and scores. According to data released by CIBIL, about 90% of all passed loan
applications have been toward individuals with a CIBIL score greater than 700.
Evidently, maintaining a decent CIBIL score is imperative for one to avail more credit.
Also, as banks and other financial institutions move toward credit-risk based calculations
for interest rates, having a high CIBIL score puts one in a strong position when
requesting new credit. Banks are likely to offer one preferential interest rates if their
CIBIL score is high enough.

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CHAPTER 8: MYTHS AND GRIEVANCE REDRESSAL

PROCESS
8.1 CIBIL Myths:
Established in the year 2000 with the aim of ensuring sustainable credit growth in the
country, CIBIL or the Credit Information Bureau of India Limited is a credit information
company which maintains a record of individuals’ loans and credit cards. The information
collated is used to generate Credit Information Reports (CIR) and credit scores which, by
of and large, are an indicator individuals’ abilities to repay loans and credit card
payments.
CIBIL aims to bring in more transparency to the loan approval process in the country, in
those customers now have an understanding of the seminal factors which lenders analyze
to gauge creditworthiness. CIBIL reports, generated on a monthly basis (as mandated by
the RBI), help lenders evaluate and approve or reject loan applications, as the case may
be. However, there are several myths associated with CIBIL which need to be busted.
Some of the common myths associated with CIBIL are the following:

• CIBIL maintains a record of defaulters

Any customer who has opted for a loan or credit card will find details of his credit
history with CIBIL but many wrongly believe that CIBIL has a record of
defaulters. The truth is information about an individual’s credit history is collated
to help him make informed decisions and avail cheaper loans. It is, by and large,
the prerogative of the bank or financial institution to evaluate the CIR and credit
score on the basis of their credit policies.

• CIBIL is meant to support banks and financial institutions only

CIBIL reports and scores not only help banks make financially viable decisions
but also enable customers maintain financial discipline and thereby increase their
chances of loan approvals. CIBIL scores, therefore, make the process of loan
approvals less opaque. Customers can avoid loan rejections owing to lack of a
healthy credit history or missed payments since it reflects on their CIBIL score.

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• CIBIL is fully authorized to make corrections in individuals’

credit report
CIBIL is not authorized to make any changes to an individual’s report unless
approved by a bank or financial institution. CIBIL can, therefore, only help
facilitate the process.

• Low CIBIL score = No loan or credit card for this lifetime

There are several lenders in the market with varying credit policies. Chances are
that their loan application may be rejected by one and accepted by another.
However, if one have a low credit score, one may have to bear the brunt of high
interest rates and charges.

• Low CIBIL scores damage one’s credit standing for keeps

A low CIBIL score is not set in stone. CIBIL scores will change as and when their
credit history improves. Also, since banks and financial institutions request a
CIBIL score only while evaluating an individual’s loan application, they will have
access to updated information.

• CIBIL scores are affected by assets/investments

A CIR comprises details pertaining to loans and credit cards. It does not factor in
a customer’s investments, savings or current account. For instance, bounced
cheques do not adversely impact one’s credit score. However, a missed EMI or
credit card payment will affect the credit card score.

• CIBIL scores are the only determining factor for evaluating loan
application
CIBIL score helps banks assess risks and as a result enhance operational
efficiencies and lower costs. In addition to their underwriting policies, lenders
take into account several factors such as the income of the borrower among many
others.

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• Applying for loans left, right and Centre is bad for their credit
score
Many believe that applying for loans from multiple lenders increases the
likelihood of acquiring a loan. However, several lenders checking out their credit
history adversely affects their CIBIL score as part of a ‘hard’ inquiry. It is,
therefore, important to ensure that one do not apply for loans simultaneously from
multiple lenders.

• Zero credit is ideal

Lenders typically look for responsible credit behavior and regular payments rather
than no credit or loans. A proven clean track record is the ideal scenario than no
credit history at all.
CIBIL score is generic in that it can be used for several transactions such as home loans,
credit cards, personal loans and car loans among others. CIBIL score can be used by
banks during all stages of the credit lifecycle (approval, account management, collection
and so forth).

8.2 CIBIL Grievance and Redressal process:

CIBIL score plays an important role when one are applying for a loan or a credit card.
The banks check their credit score to decide the interest rate to offer to one. If one credit
score is high, there is a good chance the bank will offer one a reasonable interest rate.
But, on the other hand if the credit score is low, the banks will be unsure about offering
one credit or they will give one credit for a higher interest rate. So, it is important for one
to keep an eye out on their credit score. Make it an effort to make their credit score higher
and look out for discrepancies in their credit report.
Since there is a huge database of a lot of people the wrong information might be included
in their report because one had the same name or due to any other reason. Any
discrepancy on their report might lead to the bank rejecting their application for loan.
This will further harm their credit score. So, before one apply for a loan or a credit card,
check their Credit Information Report and see if it is accurate and updated. If there is any
error with regard to their name or age or credit information, a dispute request can be

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raised based on the CIR that one purchased from CIBIL or the CIR that was accessed by
the Credit Institution with whom one applied for the loan or credit card.
All consumer interactions will be classified as Query, Request, Complaint or Feedback.
Query is when a person is seeking information. Request is when a person requests for
correction of a discrepancy in the CIBIL Report. Complaint or grievance is when a
person is not satisfied with the response time or the quality of response received.
Feedback is where a person gives suggestions on improving services or products.

Credit Information Report

Know what their Credit Information Report consists of, so one will know what possible
discrepancies one has to look for. A CIR is a record of their credit payment history that is
compiled from the information their lender provided to CIBIL. The report consists of
their basic information, details about credit facilities one has availed, past payment
history, amount overdue, current status and inquiries made. CIR includes:
• Sanctioned amount will be the loan amount that was disbursed to one by their
lender.
• Current balance is the amount one of they to their lender. Keep in mind that the
lender will take 30-45 days after they have received the payment to update it on
CIBIL.
• EMI amount is the monthly installment that one has to pay on the sanctioned loan.
• The actual payment amount is the amount that paid against the amount due.
• Amount overdue is the amount that is not paid against the due amount.
• Repayment tenure is the term for which one has taken the loan.
• Collateral is the asset one has kept against the loan as a security.
• Credit limit is the available credit in case of credit card or an overdraft facility.
• Cash limit is the cash that one can withdraw using the credit card.
• High credit is the highest amount that has been billed against a credit card or an
overdraft facility.
• Days past due is the number of days that a payment was late after the date of
payment.
• Non-performing assets are the payments made within 90 days after the due date.

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• Enquiry is added on their report every time a lender accesses their credit report
from CIBIL.
• Control number the number that is created for every CIR.
• Ownership if it is a joint or if a guarantor is present of is authorized user is
mentioned.
• Written off and settled status will be mentioned. It also includes the written off
total and principal amount.
These are some of the important things that will be mentioned in their credit report. Look
for discrepancies and make sure that all the information provided is accurate.

Initiate a dispute: If at all one find a discrepancy in the Credit Information Report,
one can initiate a dispute with CIBIL. The easiest way to do that is to submit a duly filled
online dispute form. Keep in mind that one cannot raise a dispute for the following:
• Control number
• Member name unless it is an ownership dispute
• Account number unless it is an ownership dispute
• Date reported
• Enquiry date

Dispute Resolution Process:

• First recognize the discrepancy.
• Submit the online dispute form
• The relevant section of dispute is marked as ‘Under Dispute’
• The dispute is taken up with the concerned lender based on the type of the
dispute.
• Then, the lender either accepts or rejects the dispute.
• If the dispute is accepted, the corrections are made.
• Finally, the ‘Under Dispute’ remark is removed from the concerned section.

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Grievance redressal:
If one has any grievances, one can address it to CIBIL. In case one is not satisfied with
the response one receives from CIBIL, one can bring the dispute to the notice of senior
management.
• Escalate level 1: One can submit their grievance through an online form with their
personal details and their escalation detail. This escalation is forwarded to the
Manager of Consumer Services. One will generally receive a response within 10
business days from the date of submission of the grievance. Keep in mind that one
will be required to have a valid service request number to escalate an issue. This
number is generated whenever one have any interaction with CIBIL.
• Escalate level 2: If one is not satisfied with the level 1 response, one can escalate
their concern to Assistant Vice President of Consumer Services through an online
form. It takes 10 business days for one to get a response. Bear in mind that one
will need to have a valid service request number and the online grievance ID level
1 which will be generated on successful submission of Level 1 escalation of the
issue along with their personal and escalation details.
• Escalate level 3: If their query is still unresolved after the level 2 escalation, one
can escalate the matters to Senior Vice President of Consumer Services. Use the
online form to fill in personal details and escalation details along with a valid
service request number and the online grievance ID level 2 which will be
generated on successful submission of Level 2 escalation of the issue.

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CONCLUSION

• Minimizes the default risk

CIBIL is the first such credit rating company in India who allows the banks to
sanction the loans of the individuals or partners whose credit score is above a
particular requirement of certain banks. Generally it has to be 750*. It gets
reduced in case of default of payments and vice versa.
• Helpful for both the parties
The purpose of setting up CIBIL is thus very clear and helpful to both consumers
as well as banks. CIBIL certainly affects various sectors as well in a positive way
like its employees, society etc.
• Plays a critical role in Indian Financial System
Hence from all the above information, one can say that CIBIL was created to play
a critical role in India’s financial system, helping loan providers manage their
business and helping consumers secure credit quicker and on better terms. It thus
helps to maintain financial and economic stability in the nation.
• Not much popular
CIBIL is not that well-known today as it has been set up in recent years, but use
of CIBIL will surely be helpful for the further development of the nation.
• Minimizes the load on banks
CIBIL reduces the load on banks by rating the people on the basis of their
credibility and then passing the same information to the banks. Thus, banks come
to know whether to give loan to the person or not.
• Economic Development of the country
The use of CIBIL will surely lead to the further economic development of our
economy.

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THE BIBLIOGRAPHY

1) https://www.cibil.com/partners-membership-benefits
2) https://www.cibil.com/shareholding-pattern
3) https://www.cibil.com/about-us
4) https://www.bankbazaar.com/cibil/difference-between-cibil-score-
and-cibil-report.html
5) https://www.cibil.com/company-dispute-resolution
6) https://www.cibil.com/careers/employees-code-conduct
7) https://www.cibil.com/careers/awards
8) https://www.cibil.com/careers/life-at-CIBIL
9) https://www.cibil.com/loan-approval-process
10) https://www.bankbazaar.com/cibil/cibil-score-for-sbi-home-loan.html
11) https://www.bankbazaar.com/cibil/cibil-score-for-hdfc-home-
loan.html
12) https://www.bankbazaar.com/cibil/cibil-grievance-and-redressal-
process.html
13) https://www.bankbazaar.com/cibil/cibil-score-myths.html

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ABBREVIATIONS

1) CIBIL-Credit Information bureau India limited.

2) NPA’s- Non-Performing Assets.
3) RBI-Reserve Bank of India.
4) CIR-Credit Information Report.
5) CI-Credit Information.
6) CCR-Company Credit Information Report

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