Cibil Project

STUDY OF CIBIL IN BANKS
BRIEF HISTORY
CIBIL has no such history related to itself. It was just established to avoid frauds,
defaults etc by maintaining the credit score of every individual or partners if any.
The banks registered with CIBIL do the registration for the individual or partners.
Thus CIBIL keeps them updated within every 90 or 91 days with the credit score
of the individual or partners. CIBIL does not have a proper history as its the first
ever such bureau set up.
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 dated June 4, 2002; RBI apprised banks, FIs and
state financial corporations 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.
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- CIBILs over 1000 strong member base includes all
leading public & private sector banks, financial institutions, non-banking
financial companies and housing finance companies.
CIBILs products and steps for loan sanction - CIBILs 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 applicants 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.
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
1.4 CIBILs Culture:
CIBILs 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
6
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 CIBILs 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 CIBILs 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 timely fashion. The Legal Team also ensures that CIBILs 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:
CIBILs 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. CIBILs 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 theyre well appreciated.
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 55%
ICICI Bank Ltd 10%

State Bank of India 07%
Indian Overseas Bank 5%
The Hong Kong and Shanghai Banking Corporation 5%
Union Bank of India 5%
Bank of India 5%
Bank of Baroda 5%
Allahabad Bank 3%
*So these are the 9 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.
Security standards
10
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 CIBILs role in the Loan Approval Process?

CIBILs 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.
11
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,
CIRs etc is available on the CIBILs official website. The consumer or any partner
can login and 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 a 3 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. Its 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
12
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.
The above illustration clearly shows the process which is follotheyd by CIBIL
officially. It also shows the reasons for rejections and approvals. RBI has
approved this above procedure.
13
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 doesnt 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.
14
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 House, 6th Floor, 193, Backbay 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 companys 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 companys CCR does not belong to one or the entire report is
inaccurate.
15
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
Companys Registered Address
Companys Branch Address
Telephone Numbers
PAN (Company)
Promoter/ Director/ Proprietor/ Partner Name
Relationship
Legal Constitution
City
State
PIN Code
Account Details:
16
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:
17
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.
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.
18
3.3 DISPUTE 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.
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
19
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.
CIBILs TransUnion Score:
Indias 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 TransUnion Bureau and Credit Characteristics:
Bureau Credit Characteristics is a list of predefined characteristics that summarize
various aspects of a customers 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
DetectIndias first repository with information on High Risk Activities
contributed by leading lenders. CIBIL Detect provides one with an easy and costeffective 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.
20
CIBIL Mortgage Check:

CIBIL Mortgage Checkthe 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 portfolioan easy, consistent and costeffective way to access and share mortgage information.
All these above things come under CIBILs Portfolio Management.
CIBIL Locate Plus:
CIBIL Locate Plus leverages CIBILs 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 lifecyclefrom 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
21
reports basis their needs. If one are 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.
Other things such as CIBILs 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 are 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 consumers overall
borrowings across lending institutions, identify risk areas, disburse credit faster
22
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, NonBanking 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 consumers 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, NonBanking Financial Companies, Housing Finance Companies and Credit Card
Companies.
Custom Solutions:
Custom Scorecards:
23
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 potheyrfully predict their customers 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 centre can streamline and standardize timeconsuming business processes, and help one reduce risk and increase profits. Their
decision centre also integrates with the credit bureau for facilitating consistent
decision-making across various stages of their customers 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
24
4. CIBIL TransUnion Score

5. CIBIL TransUnion Personal Loan Score
6. CIBIL TransUnion Bureau Credit Characteristics
7. CIBIL Detect
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.
2.
3.
4.
5.
6.
7.
CIBIL Consumer Credit Information Reports

CIBIL Company Credit Information Reports
Portfolio Review Reports
CIBIL TransUnion Score
CIBIL TransUnion Personal Loan Score
Market Insights
CIBIL Bureau Analyzer
3. Insurance
1.
2.
3.
4.
5.
6.
7.
CIBIL Consumer Credit Information Reports

CIBIL Company Credit Information Reports
CIBIL Locate Plus
Portfolio Review Reports
Consulting services
Custom Scorecards
Decisioning services
4. Telecommunications
1. CIBIL Consumer Credit Information Reports
2. CIBIL Company Credit Information Reports
25
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.
2.5 CREDIT FACTS:
A credit repair service cannot remove or edit any information
in their CIBIL credit information report directly.
If one authorize 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
26
provided or home address. Their credit information is

confidential information and should not be shared freely.
One can opt for CIBILs 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.
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:
27
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.
CHAPTER 4: CIBILs CODE OF CONDUCT

4.1 CIBILs 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.
28
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 employees actions are governed by their
"Code of Conduct & Ethics Policy" as enumerated below.
CIBILs 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.
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.
29
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.
30
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.
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 allotheyd under the terms of
employment.
Intellectual Property Rights
31
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
The Company records should be maintained in such a way that they are in
full compliance with all rules, laws and regulations. Adequate precautions
32
should be taken to protect them from falling into wrong hands, which could
harm Companys 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 Companys
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.
33
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
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.
34
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 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
35
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 AntiBribery and Corruption statutes and regulations, to the extent of the
applicability of the acts to CIBIL along with compliance with CIBILs 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.
Anti Sexual Harassment
36
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 CIBILs 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 persons 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 coworkers, 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. CIBILs community
investment is focused on the core theme of Educating the girl
child
4.4 OBJECTIVES:
37
The main objectives of CIBILs 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
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 girls life, they would have been doing
their job. Thats where this came from. Arun champions heavily for the education
of Indias marginalized oneth, especially girls. Citing Indias historic male
preference and his desire to combat it, Arun firmly believes that the effects of
CIBILs 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.
38
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.
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 Vidhayak Sansad.
Vidhayak Sansad
39
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.
40
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 employees 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.
41
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.
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:
42
CIBILs 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 encourage their 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
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 preapproved 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.
43
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.
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 Espirit the Events Calendar which is designed
and rolled out at the beginning of the year.
44
CHAPTER 6: MEMBERSHIP IN CIBIL

6.1 Become a member:
CIBILs 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 consumers payment track record and ability to take on additional
leverage while mitigating the consequences of adverse selection
Faster Credit Decisions Enhances a credit institutions 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.
45
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.
Regulatory Compliance:
Moreover, becoming a Member of a credit information bureau ensures their
organizations compliance with the Credit Information Companies
(Regulation) Act 2005. The Act stipulates that all the credit institutions
including NBFCs, 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
46
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) along with a
o Self attested Certificate of Registration from the appropriate
regulatory authority (Reserve Bank of India, National Housing Bank,
Government of India, etc).
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.
47
48
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 lets 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.
8.2 (1)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:
49
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.
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.
50
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
51
TDS certificate on Form 16

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.
8.3 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
52
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 applicants 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 EMIs 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 phases of ones 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.
53
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.
NRIs 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 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:
54
An individuals 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.
CHAPTER 8: MYTHS AND GRIEVANCE REDRESSAL

PROCESS
55
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 and large, are an indicator of 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 individuals 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
56
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.
CIBIL is fully authorized to make corrections in individuals credit
report
CIBIL is not authorized to make any changes to an individuals 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 ones 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 individuals 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 customers investments, savings or current account. For instance,
57
bounced cheques do not adversely impact ones 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.
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).
58
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 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
59
Know what their Credit Information Report consists of, so one will know what
possible discrepancies one have 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 have 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 othey 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 have to pay on the
sanctioned loan.
The actual payment amount is the amount that one has 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.
60
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.
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
61
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.
Grievance redressal:
If one have any grievances, one can address it to CIBIL. In case one are not
satisfied with the response one receive 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
62
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 are 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.
63
CHAPTER 9: INTERVIEW
For further information, the interview was conducted. The primary data is
generated from the detailed study of the CREDIT INFORMATION BUREAU OF
INDIA LTD (CIBIL) by visiting the field and interacting with an employee Mr.
Amit Mehendale and Mr. Apoorv Mahajan (Assistant Manager), Nariman Point.
Following are the few frequently asked questions which I came across after the
detailed study of CIBIL:
How to improve CIBIL credit score?
CIBIL score or credit score is an important factor in determining whether one will
be approved for a loan or not.
CIBIL scores are generated based on their credit history which includes past credit
taken and payment patterns in relation to them. A high score represents strong
creditworthiness while a low score indicates low creditworthiness. Low scores will
make one a risky borrower and lenders will be hesitant to approve their loan
application.
According to you as CIBIL, what is a good CIBIL score?
While applying for loan, many people do not realize they have a low score until
informed of the same by a lender who rejects their application.
Although there is no set score, a good CIBIL scores is anything in the range of 750
and above and a green signal for banks to consider approving their loan
application. Anything below 350 is considered poor. If one have a bad credit
64
history, one can improve it by following the steps given to one. One the other hand,
a score above 750 can sanction their loans.
Any steps for improving credit score ?
Most often people are taken aback by the fact that they have a bad score and they
wonder how to improve credit or CIBIL scores quickly or immediately. However,
one has to understand that fixing their credit reputation takes some time and effort
and there are no quick-fix solutions. Here are some ways by which one can get
their scores up.
Dont apply for fresh credit: As soon as one find out one have a poor
credit score, do not apply at another bank for a loan right away. The more
inquiries a lender puts in to CIBIL about their score, the lower it goes. Hold
off for a while or obtain their credit score theirself. This will be considered a
soft inquiry and can be used for new applications without creating a negative
impact.
Improve payment patterns on existing debt: To rebuild their history, make
timely payments on current debt. Ensure outstanding dues are paid off in
full. Over time this will reflect positively on their CIR. Provide standing
instructions to have dues debited automatically from their account. This will
reduce chances of missing payments.
Balance their debt portfolio: If one mostly own unsecured debt, try to
discharge this as early as possible. Secured loans impact their score more
favorably. If one must have unsecured loans, ensure its kept to a minimum.
A higher amount of unsecured debt indicates a need for funds for personal
65
purposes thereby casting a shadow on their ability to generate sufficient

income to save or create disposable income.
Use credit wisely: Dont use up their entire credit limit or too much of
available credit. Use up to 75% of their approved credit limit on their credit
cards. This will indicate calculated spending which is a positive thing. Not
using credit at all can also have a negative impact. Without any credit
history, there will be nothing to build a positive score on.
Check for discrepancies in their credit report: Since their credit score is a
reflection of what is recorded in their report, it is advisable to check for
discrepancies. Sometimes, a member bank or financial institution sends
across incorrect information to CIBIL. If this is the case, one can approach
the said bank or institution and have them correct this. Ensure all data on
positive and timely payments are recorded and submitted by their lender to
CIBIL.
Consolidate debt: If one have multiple debts, managing this becomes quite
difficult. By consolidating and paying off much debt through one
consolidation loan, it will be easier to track payments thereby reducing the
chance of a missed payment. In many cases, debt consolidation loans can
actually be availed at a lower rate of interest than the interest one pay on
existing loans. This will also make it more affordable for us.
Check their score regularly: Even as one try to improve their credit history,
keep a check to see where one stand and how much their score has increased
by obtaining their credit report at least 2 or 3 times a year. One can study
66
their report to ensure it is building up as required. Any variances can be

corrected at the earliest.
Increasing their CIBIL score is not an easy task, even if not impossible. It is
necessary, though, to remember that one will need to be patient. It may take a
couple of years at least to get their CIBIL credit score up to 750 at least. But with
concentrated effort and adequate financial discipline, this can be easily achieved.
The most important thing to do once one has reached their goal is to maintain a
good credit score by not falling back on payments or stacking up too much credit.
Can you give any tips for improving the credit score?
A low CIBIL score can be a large hindrance while applying for a loan or a credit
card. Today, CIBIL credit scores are one of the first things that lenders look into
before granting loans to applicants. A good CIBIL credit score is the indication of a
financially stable individual. A good CIBIL score is not the result of zero credit
activity. In fact, low credit activity also results in a low CIBIL credit score.
In times of great need for credit like when one need a home loan to buy their dream
home or a car loan to buy their first car, a low credit score can result in the
rejection of their loan application. Maintaining a healthy score is a just a matter of
due diligence and systematic discipline. It is not an impossible job.
For those who need to increase a low credit score, here are some steps to ease the
burden of a low CIBIL score.
1. Find out their current CIBIL score
Find out their current CIBIL score in order to set off on the path of rectifying it. An
individual has the right to view his/her CIBIL credit score at least once a year in
order to confirm his/her financial health. A Credit Information can be requested for
67
on the CIBIL website. One will be required to submit their KYC (Know Their
Customer) documents and Rs.470 on the website. Their application will go through
an online authentication process, post which their CIBIL score will emailed to their
registered email ID. One can then download the scores instantly.
2. Be open to changing their credit behavior:
Once one knows that their CIBIL credit score is low, one has to be open to
changing their credit behavior. This can be done by being proactive in rectifying
their score if it is below 750. In order to begin rectifying their credit behavior by
accepting that some of the things one have been doing are wrong and have
contributed to their low credit score.
3. Check if the account information pertains to one:
Check if the following account information provided in the Credit Information
Report is accurate. All these things given below are mandatory.
Bank account details
Loan details
Credit Card details
Their identity
Status of accounts
DPD or days past due in each credit card and loan one have availed
Written off flags
68
Settled flags
Days past due is the number of days a payment is due on an account in the
respective month. DPD above 000 has a negative impact on their CIBIL credit
score.
Flags are an indication of their past defaults and could result in a low credit score.
4. Identify where one went wrong:
A CIBIL credit score is very handy as it categorically lists out all their mistakes. It
is, therefore, imperative that one learn how to read a Credit Information Report.
Once one learns to read their Credit Information Report, one will be able to find
out where and why their score is low. One must remember to check all the account
information pertains to one before finding out where the fault lies.
5. Errors in a report:
There could be discrepancies in the reporting process when their bank gives
information to CIBIL. Such errors, could in effect, lower their score. In order to
rectify these kinds of errors one will have to raise dispute using CIBILs dispute
request form on the CIBIL website. Once one raises the request, the dispute
resolution cell of CIBIL will contact the credit institution pertaining to their loan.
30 days is the stipulated turnaround time for disputes to get resolved. Errors in the
report generally include any of the following Account balances
Overdue amount after repayment of loan
Closed loan account continues to appear in their Credit Information Report
69
Identity theft
Details of a loan that one have not availed at all
6. Improving their score:
Once one have identified their mistake, build a strategy to amend their score. Find
ways to pay their unpaid debts, outstanding amounts or even settled amounts. In
case these amounts are not paid off, good credit behavior on new accounts will not
increase their score. In some cases, scores improve even with the existence of
unpaid debt. In this situation, lenders will take into consideration all the negative
flags against the unpaid credits while appraising their loan application.
7. Speak to their creditors:
A good strategy to elevate their credit score is to speak to their creditors and come
to an understanding as to how one will clear their debt. Discipline, diligence and
cutting corners will enable one to pay off all their debts.
All these above mentioned steps are to be followed to maintain a good credit score.
Maintaining a good credit score is important for the individuals as they dont want
to get tagged as risky customers. Good credit score will fetch them bank loans
properly. Hence, maintenance of this credit score is necessary.
From where does CIBIL get its information?

Its important to note that CIBIL is merely a database that processes a credit score
with information that it receives. It does not contribute anything to lower or raise a
score. The parties that are involved in giving CIBIL their information are the banks
and lenders whom youve done business with.
70
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 Indias 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 economical 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.
71
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.
72
BIBLIOGRAPHY
All the information in the secondary data was taken with the help of newspapers
like economic times and Bombay times. Also various books like the chartered
accounting book for auditing (Ipcc group 2) by V.K. Agarwal, Padhuka, Surbhi
Bhansal and Kamal Garg and the internet. Also, the information was collected from
parents, friends, teachers. The primary data information above is also collected by
interacting with one or two people working with CIBIL.
THEYBLIOGRAPHY
1)
2)
3)
4)
5)
6)
www.cibil.com
www.onemint.com
www.bankbazaar.com
www.allbankingsolutions.com
www.creditvidya.com
www.wiki/cibil.com
73
74

Cibil Project

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cibil Project

Uploaded by

Copyright:

Available Formats

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

CHAPTER 1: INTRODUCTION TO CIBIL

STUDY OF CIBIL IN BANKS

1.2 FEATURES OF CIBIL:

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

b) Utmost care for their Environment

2. Integrity and Trust:

STUDY OF CIBIL IN BANKS

Break Organization Silos

Walk the Talk

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

1.5 AWARDS WON BY CIBIL(ACHIEVEMENTS):

STUDY OF CIBIL IN BANKS

CHAPTER 2: ORGANISATIONAL STRUCTURE

2.1 Technical partners:

Dun and Bradstreet - a leading global provider of credit

2.2 Shareholding pattern

STUDY OF CIBIL IN BANKS

ICICI Bank Ltd 10%

STUDY OF CIBIL IN BANKS

2.4 What is CIBILs role in the Loan Approval Process?

2.5 What this means to one as an individual?

STUDY OF CIBIL IN BANKS

2.6 APPLYING FOR A BANK LOAN OR CREDIT CARD?

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

CHAPTER 3: DISPUTES SETTLEMENT

STUDY OF CIBIL IN BANKS

3.2 Types of Disputes:

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

DUNS Number D-U-N-S Number is a unique identification Number

STUDY OF CIBIL IN BANKS

DISPUTE OF CREDIT REPORT ONLINE:

STUDY OF CIBIL IN BANKS

3.3 DISPUTE RESOLUTION PROCESS

SOLUTIONS BY NEED: (BUREAU)

STUDY OF CIBIL IN BANKS

Improved Trend Monitoring

STUDY OF CIBIL IN BANKS

CIBIL Mortgage Check:

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

STUDY OF CIBIL IN BANKS

Scorecards can be crucial in helping one improve their portfolio performance at

STUDY OF CIBIL IN BANKS

4. CIBIL TransUnion Score

CIBIL Consumer Credit Information Reports

CIBIL Consumer Credit Information Reports

STUDY OF CIBIL IN BANKS

3. Portfolio Review Reports

What is Credit Repair?

STUDY OF CIBIL IN BANKS

provided or home address. Their credit information is

STUDY OF CIBIL IN BANKS

CHAPTER 4: CIBILs CODE OF CONDUCT

STUDY OF CIBIL IN BANKS

Their Corporate Governance philosophy envisages attainment of the highest levels

STUDY OF CIBIL IN BANKS

4.2 Standards for Conduct of Business Ethical and Honorable

STUDY OF CIBIL IN BANKS