The credit score system of Credit Information Bureau (India) Ltd. (CIBIL) is having a positive impact on the individual loan segment as it has brought in lot of financial discipline among customers, Kotak Mahindra Bank (KMB) President (Consumer Banking) Shanti Ekambaram said here on Monday.
“While credit offtake is poor on the corporate side due to economic slowdown, consumer loans are doing well.
“Also, we see a lot of discipline in the consumer loan segment on account of CIBIL score system. Delinquencies have fallen and repayments have improved,” she said.
The CIBIL score is primarily used to judge the credit worthiness of an individual. It helps to find out if one is a disciplined or non-disciplined borrower.
"As CIBIL score has become an integral part for loans sanctions, people are now more conscious of clearing their past negative history. So, this has helped recovery of dues.
Also, with more awareness, people don’t want to have a low score on their credit history. So, overall, the CIBIL score system has brought in some culture of financial discipline in the retail loan segment,’’ she added.
She said the bank expected to end the current fiscal with 18 per cent growth in its consumer banking business. During second quarter of this fiscal, its assets in the consumer banking segment grew by 18 per cent at Rs.18,308 crore.
Home loans and LAP (loan against property) accounted for 70 per cent. The rest was contributed by small business, personal loans, credit cards and others.
New scheme for 55-plus Earlier, Ms. Ekambaram announced the launch of bank’s new savings bank account scheme meant for people in the age group of 55 plus.
Some of the features of the new scheme are cash-back offers, customised cash delivery as per customer’s convenience at his/her home on a pre-selected date, net banking and mobile banking.
The minimum balance for this segment of customers will be Rs.10,000.
