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Thursday, Aug 09, 2007
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Credit Market Money & Banking - Credit Rating CIBIL has 90 m borrower accounts in database
Mr S. Santhanakrishnan, Chairman, CIBIL.-
N.S.Vageesh Chennai, Aug. 8 As many as 90 million Indian borrower accounts and 1.2 million commercial borrowers are now in the Credit Information bureau net. If these borrowers were to approach other banks for loans, the chances are that banks would be better prepared. They would very likely have some knowledge of their background including earlier loans taken and credit card borrowings. If these borrowers hid anything or gave fake addresses, there is a good possibility of being found out. That is, if banks query the Credit Information Bureau (India) Ltd (CIBIL) to access the credit record of these accounts. In some banks, this is almost a due diligence requirement before taking on a new account. These records are compiled from the database of all banks in the country that share this with CIBIL. Mr S. Santhanakrishnan, Chairman, CIBIL, said that he expected the number of records to cross 125 million in the next quarter. He said that usage has been extensive across various banks. “We are selling more than 2 million reports a month as of now,” he said. He added that banks would get discounts based on volumes that they pulled out of the CIBIL database. Credit score
CIBIL is also due to launch a three digit credit score for individuals. Using a Credit score product, a bank could take lending decisions quickly, reduce its turnaround time and cut down the borrower-waiting period significantly. Mr Santhanakrishnan said, “The Credit Score as a product has been finalised in February and presentations to the banks have taken place. We are incorporating some suggestions from banks and fine-tuning the product and we propose to launch the same in October or November this year. Asked about the prospect of competition through the rating agency, Crisil, entering the credit information bureau market, Mr. Santhanakrishnan, said, “As the Indian market is huge, other players do have a role in this nascent activity. Our experience so far in running the bureau together with our sizeable database and also availability of credit history for more than the last 2 years shall give us a head start and sustain our position in the years to come.”
More Stories on : Credit Market | Credit Rating | Credit Cards & Debit Cards
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