Credit Information Bureau (India) Limited or CIBIL is India’s first Credit Information Company (CIC), which was set up in August 2000. With the advent of this statutory organization the landscape of India’s credit and borrow has been thoroughly redefined in the recent times. CIBIL has numerous strategic partners, including banks and other credit institutions, from which it collects credit history of borrowers on a monthly basis. It uses the information that is provided to compute CIBIL score of borrowers.
The credit information company is licensed to execute its operation by the RBI (Reserve Bank of India). The organization is governed by the Credit Information Companies Regulation Act, 2005. Information that CIBIL collects categorically revolves around loans and credit cards. A good CIBIL rating proves helpful in ways more than one. As such, it provides mutual benefits to both borrowers as well as creditors.
However, before getting into that it is crucial to inform that there are a number of dedicated online portals that categorically provide information on how to improve CIBIL rating. As such, improving the CIBIL rating is possible for anyone but the process turns out to be time-consuming. If one strictly adheres to the norms and conditions, improvement of the credit rating becomes only a matter of time.
A CIBIL score is a three-digit numeric expression that ranges between 300 and 900. A score of 750 and above is considered to be good for any individual. Credit rating computed by the premier organization is retrieved by credit organizations while assessing loan applications from borrowers. In other words, effort made by CIBIL helps credit organizations to run their business in more organized and efficient way. On the other hand, good credit rating provided by CIBIL helps borrowers to seek loans faster. It also helps them availing nominal interest charges on loans and credit cards.
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