CHENNAI: Credit Information Bureau (India) Limited (CIBIL) and TransUnion have announced the development of the CIBIL TransUnion Score.
This is the first generic credit score developed for India and will help banking and financial institutions to better evaluate the credit worthiness of their customers.
It will predict the likelihood of a customer becoming a defaulter in more than 91 days on one or more lines of credit, including credit cards, personal, home and auto loans within the next year.
“With the increase in available credit options, borrowers have taken advantage of the system by moving from institution to institution even though they have defaulted in earlier banking relationships,” said S. Santhanakrishnan, chairman of CIBIL. “By introducing this generic score with TransUnion, CIBIL is helping financial institutions minimize future defaults as well as potentially reduce consumer abuse of the credit system, while allowing access to credit at better terms and conditions for good borrowers.”
“India’s rate of economic growth is creating significant opportunities for financial service providers,” said Larry Howell, President, TransUnion International, Asia Pacific and Europe. “By using the CIBIL TransUnionScore, financial institutions can make faster, better predictions while reducing the inefficiencies associated with manual subjectivity, errors and limited information. This leads to greater access to credit for the Indian consumer while allowing financial institutions to better manage risk.”