Credit Information Bureau (India) Ltd is expanding its portfolio of services by introducing a Risk Index for corporates and business houses.
This will help Indian banks and non-banking finance companies, most of which are shareholders in the company, to take quicker decisions on extending loans to these business entities. The lower a company figures in the Risk Index, the more confidence banks will have in its ability to service the loan.
The credit information company (CIBIL) currently has the TransUnion Score for individual borrowers that are being used by banks and financial institutions for credit decisions. The score assigned to a borrower ranges from 300 to 900.
CIBIL Managing Director Arun Thukral was not willing to give a time frame for the introduction of the Risk Index scheme, stating that the company was working on it.
He said while the credit rating agencies give a broader picture of the risk profile of a company, CIBIL’s index will be a quick “snapshot” for lenders.