The Credit Information Bureau (India) Ltd. (CIBIL) has sought information from service providers about first time borrowers to bring down the risk of lenders and to offer meaning credit score for consumers.
Besides, it is planning to collect details about consumer financial discipline with regard to utilities payment such as electricity, water and sewage boards.
In this regard, CIBIL had already written to the Reserve Bank of India and regulatory authorities seeking permission, as the authorities were not willing to share their customers’ credit details, said CIBIL Chairman M. V. Nair.
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“As there is no readily available information about first time borrowers, these data will bring down lending risk to a large extent and will go a long way in helping the government to achieve its financial inclusion plan,” he said.
CIBIL report and credit score were being used extensively by banks and credit institutions to assess a borrower’s creditworthiness. At present, the compliance level was 72 per cent, up from 65 per cent three years ago. CIBIL was aiming to increase it to 90 per cent over the next three years.
According to Mr. Nair, there has been more than 200 per cent increase in credit applications over the last three years, with the younger population driving growth.Expressing concern over the mismatch in individual data that came in the way of calculating credit score, Mr. Nair once again asked the financial institutions to ensure submission of timely and accurate data.
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“What we acquire is still inaccurate, incomplete and junk data leading to lot of mismatch. Public sector banks have improved much on this front,” he said.
CIBIL is also planning to set up a credit information bureau for microfinance institutions.