You will soon be able to get your credit history from Credit Information Bureau

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(India), (Cibil), for a small payment. A decent credit score will make it easier for customers to avail a loan.

Cibil has set a cap of

Rs 100 as fees for permitting individuals to view their credit history.

For this, credit bureau is in talks with BPOs and call centre organisations, which will handle the customer calls. Cibil is targeting to meet the need of at least one million customers at the onset.

In the present set-up, only banks have access to credit history. The present move is expected to make the credit history process more transparent.

With the Reserve Bank of India (RBI) allowing credit bureaus to share information with telecom and insurance companies, Cibil will be able to consolidate credit history not just from a bank but from telecom and insurance companies. So even if you have not taken a single loan, but defaulted on mobile phone bills and insurance premium payments, the bank may just refuse to sanction a loan if you had a bad track record with other service providers.

“We should be able to launch the service by December. Customers will have to call in with their basic details of their address and of their linkages with the banks and we will be able to provide the credit report,” said Arun Thukral, managing director of Cibil, in a press conference.

At present, 20 per cent of all new account enquiries from banks and financial institutions that Cibil gets are for personal loans for which the company has launched the personal loan score to help banks bring down delinquency levels of unsecured loans. “Delinquencies have gone up in the retail segment, specially in unsecured loans and credit cards,” said Thukral.

Under this scoring card, a loan gets a credit score which is a three-digit number representing the amount of risk a consumer brings to a particular transaction. It measures of the likelihood of a default and the score range is 300-900. The higher the score, the lower is the risk of the consumer defaulting on personal loan.

“In our portfolio of 65 million customer, delinquencies are going up and the scores are coming down,” said Satish Pillai, general manager, analytics and decisioning services, Transunion Software Services. The credit score predicts the delinquency on personal loans, consumer loans, auto and two- wheeler loans. Cibil has a client base of 165 banks, financial institutions and non-banking finance companies.

The telecom sector with a new activations rate of 6 million customers a month is another market that Cibil is actively exploring. The credit bureau is in talks with at least three major telecom players to share the credit history details with them after RBI recently allowed telecom and insurance companies to access Cibil data.

Once credit-sharing takes place, Cibil will be able to provide banks with credit details of new customers with no history of a loan but a credit record from a telecom or insurance company.

manjuab@mydigitalfc.com