A whopping 79 per cent of all retail loans across the country have been approved only for individuals whose credit ratings were beyond 750, according to a data trends report filed by the Credit Information Bureau of India Limited (CIBIL).
Also, there was a significant increase in disbursal of home loans and issue of credit cards in the first quarter of the fiscal 2015-16, as compared to the corresponding quarter in the last financial year.
At an interaction here on Friday, CIBIL’s Senior Vice-President (Customer Relations), Harshala Chandorkar, said home loan growth was driven by higher demand in Mumbai, Pune, Bengaluru and New Delhi, while the maximum number of credit card applications were from Mumbai, New Delhi and Bengaluru. She said the growth was driven by increased availability of credit information.
Fielding questions, she said the number of disputes every month arising out of incorrect information furnished to CIBIL by banks were in hundreds, while CIBIL rating reports and scores were given in crores. Declining to accept that as an agency responsible for issuing reports and scores CIBIL had a role to play in such situations, she insisted that the responsibility of furnishing accurate information lay with the member banks.
Asked if payment of utility bills too would come under CIBIL’s radar soon, she said they were in talks with the concerned regulators but added that it would take some time before utility bills like telephone, power and the like would be tracked.
Ms. Harshala said credit information support from CIBIL had made lending objective, information-oriented, more reliable and less risk-prone. Delinquency of repayments (90 days and more), she said, had come down from 1.06 per cent by the end of 2010, to 0.57 per cent by this year’s first quarter.
Delinquency on credit card payments too had come down from 3.27 per cent at the end of 2010, to 1.06 per cent this quarter.
79 per cent of all retail loans approved only for individuals on CIBIL credit rating
