Hi you all!!  No Surpises , Credits & Debits have become part & parcel of our Fast Paced Life ,This time Around our new gyan is concerned with your credit report.

Now you don’t really have to visit banks in order to get your Credit reports ..

The Credit Information Bureau (India) Ltd (CIBIL) allows individuals access to their credit information reports. Home loan seekers can access their credit information details prepared by CIBIL. CIBIL is an independent organization, and has access to credit information of individuals and commercial establishments. It collects information from its members, collates it and circulates it on request. The members are banks, financial institutions, housing finance companies, credit card issuing companies and other lending institutions.

Credit Information Reports (CIRs) of CIBIL have become an important tool for banks and housing finance companies. They provide vital information on the credit history of applicants.
Until now, such information was accessible only to lenders. There was no opportunity for individuals to verify their credit ratings. There are instances of lenders not notifying dues to borrowers, (especially credit card payments and personal loans) and such loan accounts becoming irregular, which therefore deemed customers as defaulters. Now, individuals can access their credit information as analyzed by CIBIL. In case of any mistakes, they can be rectified.
Previously, a borrower used to get credit information from the bank where he applied for the home loan. A home loan application was liable to be rejected on account of negative or poor scoring by CIBIL.

The lenders never provided the CIR to borrowers. Once a borrower found out that the credit information was incorrect, on his request, the lender would provide him a nine-digit unique borrower control number.

With the control number, the borrower was supposed to contact CIBIL to get the exact details related to the negative or poor scoring details. Many times, due to wrong reporting by member organizations, it was found that the CIBIL report was incorrect. In order to get the mistakes rectified, the borrower had to go through a long process.
A borrower can now access his CIR directly from CIBIL. A CIR is a record of the credit payment history compiled from information received from credit institutions. The purpose is to help credit institutions make informed lending decisions – quickly and objectively – and enable faster processing of credit applications to help provide quicker access to credit at better terms.

In order to get the report, one needs to fill up a requisition form available on CIBIL’s website. After filling the form, you have to provide selfattested copies of some documents to CIBIL. The documents needed with the application are identity proof and address proof.
The fee for obtaining the CIR is Rs 142. It must be paid through a demand draft favouring ‘Credit Information Bureau (India) Ltd.’, payable at Mumbai and sent to CIBIL. The documents can be sent either through email, post or fax. On receiving the documents and fees, CIBIL will process the request and send a copy of the CIR.
CIBIL’s credit report includes:
1.Name and address of borrower

2. Identification and PAN numbers

3.Passport details

4.Date of birth

5.Records of all the credit facilities availed by the borrower

6. Past payment history

7. Amounts overdue

8. Number of inquiries made on that borrower by different members

9. Suits filed and their status

The CIR does not contain:
1.Income and revenue details

2. Amounts deposited with banks

3. Details of assets

4. Details of investment
With the new base rate system of interest rates coming into effect, it would be all the more beneficial for home loan borrowers. The interest rates will henceforth be based on the base rate plus a premium depending on the credit rating of the borrower. A good credit rating helps in getting a loan at a lower interest rate as compared to a loan based on a bad credit rating.

Courtesy Times Property

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