AN INSIDE VIEW

OF A
CREDIT
INFORMATION
BUREAU

www.cibil.com
TABLE OF CONTENTS

ABOUT CIBIL AND THE CREDIT SCORE 03

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IMPORTANCE OF THE CREDIT SCORE IN LOAN APPROVAL PROCESS 04
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HOW TO READ YOUR CREDIT SCORE & CREDIT INFORMATION REPORT? 05
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LOAN REJECTION & DISPUTES 07
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GLOSSARY 09
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CASE STUDY 10
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02
 ABOUT CIBIL AND THE CREDIT SCORE
WHAT ROLE DOES CIBIL PLAY?
TransUnion CIBIL Limited is Indias first Credit Information
Company. We collect and maintain monthly reports
(Credit Information Report- CIR) from banks and financial
institutions, detailing individuals loan and credit card payment
history.

Basis the CIR a Credit Score is generated which is then used by

the lenders during the loan evaluation process.

BANKS

SUBMISSION
UBMISSION OF CREDIT RECORDS CIBIL CREDIT INFORMATION EVALUATION OF
ON A MONTHLY BASIS REPORT/SCORE LOAN APPLICATION
LENDERS GENERATED

...........................................................................................

WHAT IS A CREDIT SCORE?

A Credit Score is a three digit numeric summary of your credit

history. The value ranges between 300-900. It is derived by
using details found in the Accounts and Enquiries section on
your Credit Information Report (CIR). It indicates the
probability of default of a borrower based on their credit
history. (Refer Page No. 06 for more details.)

Your Score
Figures indicate % of all new loans sanctioned falling in this score band

03
IMPORTANCE OF CIBIL SCORE IN
LOAN APPROVAL PROCESS
WHAT ROLE DOES A CIBIL SCORE PLAY APPLICANT FILLS AN APPLICATION FORM

IN THE LOAN APPLICATION PROCESS?

HANDS IT OVER TO THE BANK
Your CIBIL Score is one of the first
checks that a lender does when they
are evaluating your loan application.
Low credit score
BANK CHECKS WITH CIBIL FOR leads to rejection
CREDIT SCORE AND CREDIT REPORT
Its important to know that nearly 90%
of the loans are granted for individuals
with score greater than 750. HIGH CREDIT SCORE LEADS TO
ELIGIBILITY CHECK BASIS DOCUMENTATION

The higher your CIBIL Score, the higher are the Non eligibility leads to Eligibility will lead
chances of your loan application getting approved. rejection of application to loan approval

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HOW DOES ONE DETERMINE THEIR LOAN ELIGIBILITY?
Loan eligibility is determined using information such as Income, Current EMIs, and
Credit Score. Once a Credit Score meets the lenders internal credit policy criteria,
they then analyse the documents to understand some key points before approving
loan application as mentioned below.
DETERMINATION OF ELIGIBILITY

Case 1* Case 2*
Income : ` 50,000 Income : ` 1,00,000
Total EMIs being paid : ` 10,000 Total EMIs being paid : ` 50,000
EMI to Income Ratio : 20% (10,000 / 50,000) EMI to Income Ratio : 50% (50,000/1,00,000)
Rule of thumb EMI to Income Ratio : 50%
Rule of thumb EMI to Income Ratio : 50%
(lenders assume you will need half your salary
Total Borrowing Capacity : 50%* ` 1,00,000 = ` 50,000
for living expenses).
Total incremental EMI that the individual can
Total Borrowing Capacity : 50%* ` 50,000 = ` 25,000
afford : ` 50,000- ` 50,000 = ` 0
Total Incremental EMI that the individual can
afford : ` 25,000- ` 10,000 = ` 15,000 Basis this EMI, total additional loan that may be
Basis this EMI, total additional loan that sanctioned at an interest rate of 10% over
may be sanctioned at an interest rate of 10% 20 years = ` 0
over 20 years = ` 15,00,000ars

LOAN APPLICATION IS LIKELY TO GET APPROVED. LOAN APPLICATION IS LIKELY TO GET REJECTED.

* For Indicative purpose only.

04
 HOW TO READ YOUR CIBIL REPORT
HOW TO READ A CIR?
A Credit Information Report (CIR) contains detailed information on the credit you
have availed, such as home loans, credit cards, personal loans, automobile loans,
overdraft facilities. The Credit Report is divided into 6 sections:
CIBIL SCORE
The CIBIL Score reflects your Credit health or your Creditworthiness.

CREDIT INFORMATION REPORT

DATE: 18-01-2015 CONTROL NUMBER:780,420,020

(e) INDICATES THE VALUE PROVIDED BY BANK
WHEN YOU APPLIED FOR A CREDIT FACILITY. INDICATES SECTION IS UNDER DISPUTE

CIBIL SCORE

Your Score

Figures indicate % of all new loans sanctioned during last 1 years falling in this score band

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PERSONAL INFORMATION
It contains your Personal details (Name, PAN Card, DOB) as reported by Banks.
Make sure this information is accurate.
PERSONAL INFORMATION
NAME DATE OF BIRTH GENDER
ARUN KUMAR 14-05-1978 MALE
IDENTIFICATION TYPE NUMBER ISSUE DATE EXPIRATION DATE
INCOME TAX ID NUMBER (PAN) AABBB1234C 30-07-2000
PASSPORT NUMBER - - -
VOTER ID NUMBER - - -
DRIVING LICENSE NUMBER MH019933333 12-12-2006 11-12-2016
RATION CARD NUMBER - - -
UNIQUE ID NUMBER (UID) - - -
ADDITIONAL ID # 1 - - -

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CONTACT INFORMATION
Various contact details provided by various lenders are recorded here.
Up to 4 addresses are mentioned here.
CONTACT INFORMATION
ADDRESS 1 CATEGORY STATUS DATE REPORTED
ADDRESS LINE 1 ADDRESS LINE 2 PERMANENT OWNED 12-06-2009
ADDRESS LINE 3 ADDRESS LINE 4
ADDRESS LINE 5
STATE PIN CODE
TELEPHONE NUMBERS
TYPE NUMBER EXTENSION
MOBILE PHONE
HOME PHONE
OFFICE PHONE
NOT CLASSIFIED

E-MAIL CONTACT
E-MAIL ADDRESS 1
E-MAIL ADDRESS 2

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EMPLOYMENT INFORMATION
Monthly or annual income details are captured here as reported by the lenders.
As mentioned at the time of loan application.
EMPLOYMENT INFORMATION
ACCOUNT TYPE DATE REPORTED OCCUPATION
HOME LOAN 10-01-2005 SALARIED
INCOME FREQUENCY (MONTHLY/ANNUAL) INCOME INDICATOR (NET/GROSS)

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ACCOUNT INFORMATION
Contains the details of your credit facilities including names of lenders, type of
credit facilities (home, auto, personal, overdraft, etc.), account numbers,
ownership details, date opened, date of last payment, loan amount, current
balance and a month on month record (of up to 3 years) of your payments.
ACCOUNT INFORMATION
ACCOUNT DETAILS DATES
MEMBER NAME DATE OPENED / DISBURSED
ACCOUNT NUMBER DATE CLOSED
ACCOUNT TYPE DATE OF LAST PAYMENT
OWNERSHIP DATE REPORTED AND CERTIFIED
ACCOUNT STATUS
CREDIT LIMIT RATE OF INTEREST
HIGH CREDIT REPAYMENT TENURE
CURRENT BALANCE EMI AMOUNT
CASH LIMIT PAYMENT FREQUENCY
AMOUNT OVERDUE ACTUAL PAYMENT AMOUNT

COLLATERAL STATUS
VALUE OF COLLATERAL SUIT FILED/WILFUL DEFAULT
TYPE OF COLLATERAL WRITTEN-OFF AND SETTLED STATUS

The below section represents your payment behaviour. Any irregularity in payment is
recorded here. Please check the glossary section to understand the terms in detail.
PAYMENT HISTORY (UP TO 36 MONTHS; LEFT TO RIGHT BEGINNING WITH THE MOST RECENT PAYMENT)
PAYMENT HISTORY START DATE 28-04-2003 PAYMENT HISTORY END DATE 28-11-2009
DD-MM-YYYY DD-MM-YYYY
DPD: DAYS PAST DUE AC: ASSET CLASSIFICATION
DPD / AC 000 000 000 000 STD STD 000 000 000 000 000 000
MONTH-YEAR 11-09 11-09 11-09 10-09 09-09 08-09 07-09 06-09 05-09 04-09 03-09 03-09
DPD / AC 000 000 000 000 STD STD 000 000 000 000 030 000
MONTH-YEAR 11-09 11-09 11-09 10-09 09-09 08-09 07-09 06-09 05-09 04-09 03-09 03-09

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ENQUIRY INFORMATION
This section details out which lenders are requesting /enquiring for your credit
details. The purpose for which the enquiry is made and the approximate amount for
it is highlighted in this section.
ENQUIRY INFORMATION
MEMBER NAME DATE OF ENQUIRY ENQUIRY PURPOSE ENQUIRY AMOUNT
ICICI BANK 11-07-2006 CREDIT CARD 50,000

If you have made many applications for loans in a short period of time or have
recently been sanctioned new credit facilities, a credit institution is likely to view
your application with caution. This behavior of seeking excessive credit indicates
that your debt burden is likely to, or has increased and you are less capable of
honoring any additional debt, leading to a marginal impact on your Credit Score.
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 LOAN REJECTION AND DISPUTES
WHY ARE APPLICANTS ASKED TO CONTACT CIBIL IF THEIR LOAN HAS
BEEN REJECTED?
One of the parameters considered by lenders when evaluating a loan application is
the CIBIL Score. The loan would have been rejected because the CIBIL Score does
not meet the lenders internal Credit policy criteria. By contacting CIBIL you can
purchase your CIBIL Score and Report understand your credit history in detail. The
report will indicate the areas that are adversely affecting the Credit Score or will help
you identify any discrepancies/errors that may be reflecting against your name.
................................................................................................................................
WHAT ARE THE TYPES OF DISPUTES/ERRORS THAT CAN BE RAISED
WITH CIBIL?
YOU CAN CONTACT US IF YOU NOTICE ANY ERROR IN YOUR REPORT. THE TYPES
OF DISPUTE THAT CAN BE RAISED ARE:
1. Personal Information: Information such as Name, Date of Birth, Pan Card,
Address, etc.
2. Account Information: Information such as Account/Loan Type, status,
date of last payment, current balance, amount overdue etc. can be disputed.
If you purchased your CIR within 45 days of making the last payment, it may
not be updated yet. However, if the Date Reported is older than 2 months,
write to CIBIL to update the information.
3. Ownership: Make sure all personal details and accounts belong to you.
If an account does not match, raise a dispute.
4. Duplicate Account: If the same account is reflecting more than once, you
can get this rectified.

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DISPUTE RESOLUTION PROCESS

DISPUTE RESOLUTION PROCESS

Disputed field (s)

Submit the under relevant section (s) are
Online Dispute Form marked Under Dispute

The Dispute is taken up

with the concerned Lenders
based on type of dispute.

The Lender accepts or

rejects the Dispute.

Under Dispute
is removed
form Disputed field under If Dispute is accepted
relevant section (s) corrections are made.

Total Turnaround Time of 30 Days*

*Subject to the time taken by the CI.

*Subject to the time taken by the CI.

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 GLOSSARY
Understanding the terms and keywords
KEY TERM: EXPLANATION
AC (ASSET CLASSIFICATION) It is important to note that some banks report DPD (please refer to the DPD description for more information) as per the Asset Classification norms defined by RBI, which are as follows:
DPD Denotes Explanation
STD Standard Payments are being made within 90 days.
SMA Special Mention Account Special account created for reporting Standard account, moving towards Sub-Standard.
SUB Sub-Standard Payments are being made after 90 days.
DBT Doubtful The account has remained a Sub-standard account for a period of 12 months.
LSS Loss An account where loss has been identified and remains uncollectible.
ACCOUNTS Only credit facilities get reported on your CIR, such as home, auto and personal loans, overdraft facilities, credit cards, and loan against shares. assets including savings account, fixed
deposits, mutual funds and stock investments do not get reported.
ACTUAL PAYMENT AMOUNT Is the amount you have paid to your lender if it is different from the EMI Amount. This may be more or less than the EMI Amount.
AMOUNT OVERDUE Indicates the total amount that has not been paid to the lender in a timely fashion (includes principal and interest amount).
CASH LIMIT Applies to credit cards specifically. It is the amount of cash you are permitted to withdraw from your credit card.
CLOSED LOAN ACCOUNTS A loan account that has been closed by the lender if you have paid off your loan. It could also be closed if you have not paid off the full loan amount but the status of the account is Written
Off and Settled.
CN (CONTROL NUMBER) This is your report number and is essential if you feel you need to raise a Dispute Request.
COLLATERAL Is provided to a lender as security to protect the lender in the event you are unable to repay your loan. This may be property, shares, gold, etc.
CREDIT LIMIT Applies to credit cards and overdraft facilities. It reflects the total amount of credit you have access to with regard that credit card or overdraft facility.
CURRENT BALANCE Is the amount you still owe on a particular credit facility. Lenders typically take 30-45 days after your payment is received to update this information with CIBIL.
DPD (DAYS PAST DUE) DPD or Days Past Due appears in the Account Information section of your CIR. The DPD indicates how many days a payment on that account is late that month. Anything other than 000 or
STD (please refer to the ASSET CLASSIFICATION description for more information) is considered negative by a lender. Up to 36 months of this payment history (with the most recent
month displayed first) are provided.
On occasion you may see XXX reported for your DPD on a certain account which implies that information for these months has not been reported to CIBIL by the bank.
EMI AMOUNT Is the EMI (Equated Monthly Instalment) that you pay on the loan.
ENQUIRY Enquiries are added to your report when you apply for a loan or credit card and the lender decides to access your CIR. Details such as the name of the loan provider size and type of loan are
captured in this section. Please note that the date of the enquiry may differ from your actual application date because the lender may access your CIR a day or more after you have applied.
HIGH CREDIT Applies to credit cards and facilities. It reflects the highest amount ever billed (including interest and fees) for that particular credit card or overdraft.
NA OR NH A score of na or nh is not a bad thing at all. these mean one of the below:
a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system.
b) You do not have any credit activity in the last couple of years.
c) You have all add-on credit cards and have no credit exposure.
OTHERS STATUS Possible status Explanation
Restructured Loans The lender has restructured the loan by offering different terms
(For e.g. Extended the loan tenure or reduced interest rate)
Restructured loan (Govt mandated) The lender has restructured the loan basis the Government mandate prevailing at the time.
Written-off (WO) The lender has written off the amount due (without being able to recover from the -individual)
Settled The lender and the -individual have settled the amount outstanding i.e., agreed at a lower value than the actual amount due.
Post (WO) Settled Post the account being written off, the lender and the -individual have settled the loan (this settlement amount is generally lower than the actual
amount due)
Account Sold The lender has sold the particular account to another lender/-financial institution
Account Purchased This particular loan account has been purchased from the original lender
Account Purchased and Settled The particular loan account has been purchased by the current lender and both the current lender and -individual have reached a settlement
with regards to the amount due.
Account Purchased and Written off The particular loan account that had been purchased from another financial institution and has now been written-off.
Account Purchased & Restructured The particular loan account that had been purchased from another financial institution and has now been restructured with different
terms and conditions.
Written off and Account Sold The lender has sold the written-off account to another lender/financial institution

OWNERSHIP This field tells the lender who is responsible for payments on that loan or credit card. There are 4 types of indicators that can appear on your CIR.
1. Single: You are solely responsible for making payments on the account.
2. Joint: You and someone else bear joint responsibility for payments on these accounts. This will also reflect on the other individuals CIR.
3. Authorized User: This is used for add-on credit cards that you may have. While this reflects on your CIR, lenders know that you are not responsible for paying dues on that particular account.
4. Guarantor: A guarantor pledges to repay a loan on behalf of a third party who has taken a loan. Hence, he provides a guarantee to the lender that he will honour the obligation, in case
the principal applicant is unable to do so.
REPAYMENT TENURE Is the term of your loan. This field is to be read with the PAYMENT FREQUENCY field in order to accurately understand the term of the loan. For example, 120 at a monthly payment
frequency would mean the term of the loans is 10 years.
SANCTIONED AMOUNT This is the loan amount disbursed to you. Applies to account types other than credit cards and overdraft.
SETTLEMENT AMOUNT When an amount owed on a loan account is disputed, the individual and lender settle at some amount in between. Its what the lender believes is owed and what the individual believes he
should pay. This is the amount the individual has agreed to pay. The rest of the amount (that the lender believes is owed) is written-off by the lender.
SUIT-FILED / WILFUL DEFAULT In case the lender has filed a suit against you, there is specific reporting prescribed by the Reserve Bank of India (RBI). This is as follows:
1. No Suit Filed (or the field will be blank) 2. Suit filed 3. Wilful Default 4. Suit filed (Wilful Default)
WRITTEN-OFF AMOUNT (PRINCIPAL) This field reflects the principal amount written-off by the lender. It follows that the difference between the total and principal written-off amounts is the interest amount that has been
written-off on this account.
WRITTEN-OFF AMOUNT (TOTAL) When a loan is written-off there is an interest and principal component. This field reflects the total interest and principal amount written-off.
WRITTEN-OFF AND SETTLED STATUS If this section is populated, the lender has either restructured your loan by offering you different terms (extended the loan tenure or reduced the interest rate, etc.), written-off this
amount, or settled at some amount less than what the lender believes it was owed. The possible values are as follows:
1. Restructured Loan 2. Restructured Loan (Govt. Mandated) 3. Written-off (WO) 4. Settled 5. Post (WO) Settled.

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 CASE STUDY SCORE
HOW A GOOD CREDIT HISTORY HELPS IN GETTING LOWER RATES
FOR LOANS?
Mr. Roy wanted a car worth 10.29 lacs, he had 4 lacs and needed an auto loan of
6.29 lacs. He applied for a loan from Bank A, who offered him a quote of 11.70% for
a 5 year period; the EMI would be 13,897. Mr. Roy also approached Bank B, who
checked his CIBIL Score and Report and offered a lower rate of 11.30% for the
same term, bringing down the EMI by 126. Mr. Roy called Bank A to decline their
offer since Bank B had given him a better quote. On learning this, Bank A matched
the offer by giving him a rate of 10.34%; the EMI would be 13,470, resulting in a total
saving of 25,604 over the 5 years. Mr. Roys good credit history, credit score, and
financial discipline earned him almost a 3% discount on an auto loan.

Registered Office:
TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited), One Indiabulls Centre,
Tower 2A, 19th Floor, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013.
Tel.: 61404300 | Email: [email protected]
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