Credit Score


The Credit Information Companies (Regulation) Bill was passed in the Parliament and received assent of the President on 23rd June 2005.


Credit Information Bureau (India) Limited or CIBIL is a Credit Information Company (CIC) founded in August 2000.CIBIL was Incorporated basis the recommendations made by the Siddiqui Committee. Records of individual's payments pertaining to their loans and credit cards are submitted by banks and other lenders to CIBIL every month. CIBIL , uses the information received from Banks and other lenders and translates the same to create Credit Information Report (CIR) and calculate credit score.


Credit Score ranges between 300 to 900. Lenders generally prefers credit score greater than 700.Higher CIBIL Score enables borrowers to bargain for better Interest Rate and faster processing of Loan.

Lower CIBIL Score enables Borrower and Lender to take informed decision basis the credit history.

Individuals can download CIR and Credit Score at a cost of 500/- (Approx) payable Online through CIBIL's website.

CIBIL provides comprehensive credit information on consumer and commercial credit to credit grantors, individual consumers and business entities in India. CIBIL has two divisions- Consumer Bureau and Commercial Bureau.

Consumer Bureau was launched in 2004 with 4 million records
Commercial Bureau was launched in 2006 with 0.7 million records

Consumer Bureau maintains more than 290 million records
Commercial Bureau maintains more than 14 million records

CIBILs over 930 strong member base includes banks, financial institutions, non-banking financial companies and housing finance companies.

There are 3 major competitors of CIBIL in India:

- Experian Credit Information Company of India Private Ltd

- Equifax Credit Information Services Private Limited

- High Mark Credit Information Services


The CIBIL Credit Report and Score is gaining increasing relevance in the lives of consumers, not only for availing credit, but also in other sectors like Investment & Securities, Telecom, Retail financing, Insurance, Stock Broking etc.


Investments and Securities:

SEBI (Securities and Exchange Board of India) recently announced that Investment advisers will need to have a good CIBIL credit report and satisfactory research capacity to get permission to provide advise to investors in stocks and other capital market.
SEBI board feels that regulations need to be robust enough to safeguard the interest of investors in the capital markets and including the requirement of a credit report or score from CIBIL would ensure further strengthening of these regulations.

Retail financing:

Now finance companies and banks also check creditworthiness of consumers, who are seeking to buy televisions, computers and other electronic products on EMIs to provide them instant financing at the store itself. With the help of DecisionCentreSM - an automated decision-making platform offered by CIBIL & TransUnion, finance companies and banks can check a consumers credit score instantly and offer them easy EMIs for purchase of the product on credit. They use this instant decisioning solution to check whether the consumer who desires to avail this credit facility would turn out to be a good re-payer or is he likely to default. This helps them make faster decisions at the front end counter making it a prudent and rewarding choice. Credit score checks can be beneficial for both consumers and financers. It enables financers to take instant decisions on whether to finance a product on credit or not, which in turn benefits consumers too.


Telecom service providers are using the CIBIL TransUnion Score for making instant decisions on post paid mobile phone limits. When a consumer applies for a post paid telephone facility, the service provider will pull her/his credit score and credit history basis the information provided in the application. This information in the credit report and the score will enable the service provider to assess the consumers financial standing and assign an appropriate credit limit on the post paid connection basis their policies.


Insurance companies are using CIBIL Credit Reports and a solution called CIBIL Locate Plus which provides them with updated contact information on their consumers. This information helps them to contact and follow up with their customers and enhance outreach.

Stock Broking:

Stock Broking firms use CIBIL credit reports to increase their customer contactability. They are also using a credit information solution called CIBIL Bureau Credit Characteristics which provides them with data on the credit exposure on their clients. This information enables them to gauge the extent of net worth of their client.

Asset Reconstruction Companies (ARCs):

ARCs use the credit information reports and solutions like CIBIL Portfolio Review and CIBIL Bureau Credit Characteristics to enhance the efficiency of their collections processes. This information gives them insights into the consumers overall credit profile and exposure and formulate their strategies accordingly.

For more information refer CIBIL's offical website -