It will soon be possible for companies to see the information that banks and lenders use to evaluate their loan applications. Credit Information Bureau (India) Ltd (CIBIL) is now making companies' credit information reports available to individual companies.
The fee for the Company Credit Information Report (CCIR) is Rs 2,500 and the payment can be online or though demand draft.
A CCIR is a month-on-month record of a company's debt-related exposure and payments.
It captures cash credit, overdraft facilities, loans of all maturities, bank guarantees, letters of credit, packing credit, deferred payment obligations, forward contracts and any other debt exposure that a company has incurred.
Currently, CCIRs are used by banks and non-banking financial institutions in order to evaluate the ability of companies to bear additional debt.
These reports have been available to banks from CIBIL for five years.
CIBIL has a database of over 70 lakh companies' records.
Business entities can now purchase their CCIR and view the information that a lender will review before approving their loan application.
This helps a company increase its chances of loan approval by better understanding where it stands in the financial life cycle.
It also provides an opportunity to detect and correct any discrepancies that are present in the CCIR.
Companies can ask their vendors or partners for their CCIRs.
This can help them evaluate their partners better, said Mr Arun Thukral, Managing Director, CIBIL.
Going ahead, CIBIL will look at providing data on trade credit, for which it is talking to companies.
CIBIL may even look at a score, similar to the score for individual consumers' reports, Mr Thukral added.