Credit Information Bureau India Limited (CIBIL): It is a repository of information, which contains credit history of commercial/consumer borrowers. The members of CIBIL are banks, NBFCs and Housing Finance Companies who provide borrower data to CIBIL. It collects and maintains records of an individual‘s payments pertaining to borrowal accounts including credit cards from the member institutions on a monthly basis. It provides the list of loans availed by the persons/entities with various Banks and Financial institutions along with payment history as well as overdues, if any. The CIBIL website also provides CIR along with CIBIL Trans Union Score2 (TU2) which is arrived on the basis of credit history of the borrower in a nutshell and is useful in taking informed credit decision. The possible score ranges 300 to 900. The minimum acceptable score is fixed as 600 and proposals with TU score in the range of 550 to 599 are to be referred to next higher authority for sanction. Proposals with TU score less than 550 should not be entertained. The payment history has a significant impact on the score as higher the score lower the risk. High utilization of credit limits also play a vital role in arriving credit score of an individual. “Credit Hungry behavior” – many applications for loans, indicates that the debt burden is likely to, or has increased and one is less capable of honoring any additional debt and is likely to negatively impact the score. Obtaining CIR from CIBIL is mandatory before sanctioning of any loan or advance. It is a powerful tool to protect the interest of the Banks. The name of CIBIL is changed to TransUnion CIBIL Limited with effective from 29.09.2016.
Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI): It is a government company licensed under section 25 of the Companies Act 1956 and the guidelines are notified on 30.03.2011. The objective of the company is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry is also an important for the development of the home loan market as lenders can now be sure that the property offered as a security has a clear title. The recent amendment to SARFAESI (CERSAI) Amendment Rules 2016 has enhanced the scope of registration of charges with CERSAI. By virtue of the said amendment in addition to registration/filing of particulars of creation, modification or satisfaction of Security Interest created by deposit of Title Deeds, the following charges should also be registered with CERSAI.