Credit Information Company in India

What are Credit Information Companies (CIC’s)?

CIC or Credit Information Company is an independent third party institution that collects financial data regarding loans, credit cards and more about individuals and shares it with its members. Banks, Non-Banking Financial institutions are usually the customers of Credit Information Companies. The Credit Card Company collects financial information about all these individuals and forms a credit report based on their financial history. This credit report plays a very important role as it helps banks and other financial institutions determine the creditworthiness of an individual applying for a loan or credit card with them.

Credit Information Companies Regulation Act (CIC Act)

Credit Information Companies in India are licensed by the Reserve Bank of India and governed by the Credit Information Companies Regulation Act, 2005 and various other rules and regulations issued by the Reserve Bank of India. The CIC Act, 2005 is a legislation that is enacted by the Government of India, in order to regulate the actions of the Credit Card Companies in India. Following the CIC Act, 2005, the RBI and the Government of India enacted the CIC Act, 2006.

List of Credit Information Companies In India

There are exactly four well known CICs in India as of now. Given below is a list of CICs in India:

  • CIBIL - The Credit Information Bureau Limited or CIBIL was founded in the year 2000. It is also the first Credit Information Company of India.CIBIL boasts of over 900 strong member base including public and private sector banks, non-banking financial institutions and housing finance companies. CIBIL collects commercial and consumer finance related data and forms a credit report. The company also issues a score derived from this data known as CIBIL score. The CIBIL score plays a very important role when it comes to the approval of loan and credit cards. Any individual can purchase a copy of their CIBIL report for a cost of Rs.550 and have access to it within 3 days.
  • Equifax - Equifax is a CIC that was founded in the year 1899 in Atlanta. It is one of the oldest CIC as of now. Equifax got its ‘Certificate of Registration’ in India in the year 2010 by the Reserve Bank of India. The company has a separate bureau dedicated to address the growing lending and regulatory needs of the Microfinance Institutions. The company charges a fee of Rs.138 for a basic credit report and a fee of Rs.400 for credit score.
  • Experian - Experian Credit Information Company was established as a joint venture with several banks and financial institutions in India in the year in 2006. It was named as one of the ‘World’s most innovative companies’ by Forbes magazine in the year 2014. Experian prepares credit reports of individuals based on the information provided by banks and other financial institutions about the financial history of the individual. The company charges a fee of Rs.399 for a credit report and credit score while a credit report will cost just Rs.138.
  • High Mark Credit Information Services - This Company not only provides credit reports to customers, but also caters to borrower segments such as SME, commercial borrowers and retail borrowers. It was established in 2005 in Mumbai. The company charges a nominal fee for a credit report.

How do Credit Information Companies's work

Credit Information Companies comply public data, credit transactions and payment histories of individuals and companies. The data is collected from various authentic sources and the companies form a credit report based on the collected data. The credit companies also create a score based on the credit report of an individual or an organisation. Usually credit score ranges between 350 to 850, anything above 750 is considered as a good score. The credit report and credit score plays a very important rule in an individual’s financial journey as banks refer to this report and score to decide the creditworthiness of an individual before granting a loan or credit card

Rules and regulations for CIC's

The actions of Credit Information Companies is regulated by the Credit Information Companies Regulation Act, 2005, enacted by the Government of India. Following the CIC Act of 2005, the RBI and the Government of India followed up with the Credit Information Companies, Regulations and Rules Act, 2006.

According to the Act, only certain entities are allowed to be members of the Credit Information Companies. Given below is a list of entities that can be members of CICs.

  • Credit Institutions under Section 2(f) of CIC Act.
  • Credit information companies under section 2(e) of the CIC Act.

A CIC, a credit institution or any authorised individual can request for a credit report anytime. A CIC will adapt to a format approved by RBI during such instances and furnish the requested information within a given time.

If there is any dispute between the CIC and its member related to credit information, the dispute shall be settled by conciliation under the as provided in the Arbitration and Conciliation Act, 1996.

Who has access to these reports?

Given below is a list of entities that can have access to a credit report from a Credit Information Company:

  • Credit grantors
  • Insurance companies
  • Collection agencies
  • Employers with the permission of the individual

Frequently Asked Questions on CIC

  1. What is a Credit Reporting Bureau?

    A credit reporting bureau is a third-party institution that garners and manages records related credit card payments and mortgages of consumers and commercials from various financiers/lenders.

  2. Which are credit rating bureaus?

    The Reserve Bank of India has established and licensed four credit rating bureaus that include CIBIL, Equifax, High Mark, and Experian. The agencies shall be administered by The Credit Information Companies (Regulation) Act, 2005 and rules and regulations issued by the central bank of India, the Reserve Bank of India.

  3. What is credit bureau data?

    Each credit rating agency collects financial data of consumers and commercial entities from various lenders. Consumer credit data includes account history, payment history, property information, public domain information, delayed payments, missed payments, and loan approvals and rejections. Commercial credit data includes company details, principal information, auditor’s information, commercial judgments, and previous inquiries.

  4. What is the ultimate objective of credit reporting bureaus?

    Credit rating bureaus collect financial details of individual customers and commercial entities. The most common categories of credit data accumulated by agencies include account history, payment history, outstanding loans, outstanding credit card payments, account details etc. The agencies generate Credit Reports based on financial information collected by lenders and bankers. The ultimate objective of these agencies is to rate individual customers and commercial entities. Banks, licensed financiers, and Non-Banking Finance Corporations (NBFCs) use consumer credit rating as criteria while offering financial products.

  5. What does a credit rating agency do?

    A credit rating agency collects financial data from participating lenders and creditors. The overall credit history of credit applicants shall be reported back to financial institutions. The agency generates credit reports for individuals and corporations to rate on a separate scale. Individuals are assessed in the range of 300 to 900.

    The agency considers the following elements while rating companies:

    • Overall debt capital of the company
    • Previous debt history
    • Debt repayment capacity
  6. What is the source of information?

    Credit bureaus collect financial details from all financial institutions including banks, authorised lenders, and Non-Banking Finance Companies (NBFCs). The Reserve Bank of India has made it compulsory for all lending companies to furnish the financial details to credit rating bureaus. Bureaus use multiple sources to collect data.

  7. Who uses credit bureaus data?

    Credit card companies and banks are the most common users of credit bureaus data. Other users are insurance companies, landlords, debt collection agencies, and licensed lenders.

  8. What is Credit Information Act?

    The Credit Information Companies Act, 2005 was enacted to regulate credit rating agencies and facilitating efficient allocation of credit. The Government of India and the Reserve Bank of India have enacted the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006. These two are collectively called the CIC laws.

  9. Do you get a free copy of credit reports?

    Yes, you can. You can obtain a free copy of credit reports once a year from each agency. It is ideal to review credit reports periodically to check for correctness and completeness. Check your free Credit Score in less than a minute. Errors in reports can be rectified. Credit rating agencies are also necessitated to provide you a free copy in the following circumstances:

    • A denied application due to details on your reports
    • An unemployed person looking for a job change within 60 days
    • If you are a victim of identity theft and are on welfare
  10. Do bureaus only provide information?

    Yes, credit rating agencies only provide the required information to creditors and lenders to approve or deny specific financial products. They do not make a credit decision.

News About Credit Information Company in India

  • Hudco receives Baa2 rating from Moody’s

    Housing and Urban Development Corporation (Hudco) has received Baa2 rating from Moody’s. The global credit rating agency has given a stable outlook to Hudco owing to low credit risk business model in addition to the government support. Moody’s has given a baseline credit assessment (BCA) of ba1 to the company which reflects the fact that almost all lending is to entities owned by Indian state governments which results in a low credit risk business model. The credit rating agency also said that around 95% of its outstanding loans and 99% of fresh disbursements over last three years, have been to state government-owned entities. Moody’s stated that Hudco’s key credit weakness is its funding and liquidity management. Its status as a government-owned company results in a good access to domestic sources of wholesale funding from banks and the bond market. 

    The company holds almost no excess liquidity and it manages its liquidity by matching maturities of assets and liabilities. According to Moody’s an upgrade of the ratings is unlikely, because Hudco's issuer rating is already at the same level as the government's sovereign rating (Baa2 Stable). The company's BCA could be upgraded if there is a significant and sustained improvement in its liquidity profile, particularly an increase in excess liquidity on its balance sheet to buffer against potential adverse market conditions. 

    18 March 2019

  • RBI to meet credit rating agencies and trade bodies on 26 March

    Reserve Bank of India (RBI) Governor Shaktikanta Das will meet credit rating agencies and trade bodies on 26 March 2019. The pre-policy consultation meeting will take place in Mumbai. The agenda of the meeting is to discuss interest rate and steps to boost economic activities, according to a report from PTI. The meeting is aimed at broadening the consultation process before the next financial year's first MPC meet that is scheduled to take place on 4 April 2019. In addition to credit rating agencies and representatives of the trade bodies, the meeting will have representatives of the All India Bank Depositors' Association. The RBI governor has been meeting bankers, credit rating agencies, industry chambers, non-banking financial companies (NBFCs), bankers, and government representatives to obtain their views on different aspects of the economy and the measures they expect from the central bank. 

    The bi-monthly policy which is to be finalised by the six-member Monetary Policy Committee (MPC) will be important as it would be announced just a week before the commencement of the seven phase general elections that will kick start from 11 April 2019. Governor Das had promised to take along on key policy issues to maintain growth while keeping inflation under check.  

    18 March 2019

  • RBI to meet credit rating agencies and trade bodies on 26 March

    Reserve Bank of India (RBI) Governor Shaktikanta Das will meet credit rating agencies and trade bodies on 26 March 2019. The pre-policy consultation meeting will take place in Mumbai. The agenda of the meeting is to discuss interest rate and steps to boost economic activities, according to a report from PTI. The meeting is aimed at broadening the consultation process before the next financial year's first MPC meet that is scheduled to take place on 4 April 2019. In addition to credit rating agencies and representatives of the trade bodies, the meeting will have representatives of the All India Bank Depositors' Association. The RBI governor has been meeting bankers, credit rating agencies, industry chambers, non-banking financial companies (NBFCs), bankers, and government representatives to obtain their views on different aspects of the economy and the measures they expect from the central bank. 

    The bi-monthly policy which is to be finalised by the six-member Monetary Policy Committee (MPC) will be important as it would be announced just a week before the commencement of the seven phase general elections that will kick start from 11 April 2019. Governor Das had promised to take along on key policy issues to maintain growth while keeping inflation under check.  

    18 March 2019

  • Credit rating agencies could be banned from having dual roles

    The Reserve Bank of India (RBI) may not allow credit rating agencies to have dual roles. At present, the credit rating agencies in India act as advisor as well as rating agencies for companies. However, this may change soon as according to the banking regulatory, having two roles prevent the credit rating agencies from making biased assessments about the financial condition of their clients and restrict conflict of interest that may step in. The role of rating agencies has come into the limelight post the IL&FS debt fraud. Credit rating agencies are jointly regulated by both SEBI and RBI as these firms rate bank loans and NBFCs, which constitute 70% of their business. 

    As per reports, RBI may soon initiate a dialogue with market regulator Securities and Exchange Board of India SEBI to chalk out new regulations that would impact the way credit rating agencies function. The move comes from RBI after the IL&FS fiasco that has created rippled in the finance sector. Last week, RBI Governor Shaktikanta Das took a meeting with top credit ratings officials, and the deputy governor. They raised doubts over rating agencies' ability to assess credit risk and take timely rating action

    11 March 2019

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CIC Reviews

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  • Bank Bazaar Personal Loan
    "Customer friendly"
    HOME CREDIT INDIA FINANCE PRIVATE LTD
    0.5 3.0/5 "Satisfactory"
    Through an internet website I came to know about Bank Bazaar for the first time. I have been using for more than 2 years. I am using the mobile application and it is user friendly to access. This is first time I have applied for a personal loan and the process was good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Sep 21, 2019
  • Dena Bank
    Dena Bank Personal Loan
    "Need to decrease charges & need to provide more loan "
    HOME CREDIT INDIA FINANCE PRIVATE LTD
    0.5 2.0/5 "Expected more"
    From HOME CREDIT INDIA FINANCE PRIVATE LTD applied for a personal loan through an online before few months. They have told as pre approval loan for the tenure period of 3 years. But the rate of interest was too high of 24%. when compare to other source.
    Was this review helpful? 0
    , bangalore
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Customer friendly"
    HOME CREDIT INDIA FINANCE PRIVATE LTD
    0.5 5.0/5 "Blown Away!"
    I have been aware about Bank Bazaar for more than a years I am not using the mobile application. At an initial I came to know about Bank Bazaar through a promotional mail. For credit score I can able to check through a website and it is easy since it is free of cost.
    Was this review helpful? 0
    , thane
    Reviewed on Sep 21, 2019
  • Dena Bank Personal Loan
    "Need to provide more loan amount"
    HOME CREDIT INDIA FINANCE PRIVATE LTD
    0.5 5.0/5 "Blown Away!"
    I was applied for my personal loan from Home credit through an online on few months before. On time I received a call from their end. The amount which was offered for the tenure period of 2 years. For an interest rate was average. From bank closed the loan process.
    Was this review helpful? 0
    , thane
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Customer friendly"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    Few months before I came to know about Bank Bazaar for the first time, at an initial through a website I know about Bank bazaar. I am using the mobile application and it is user friendly to access. I use to check credit score and aware about other rate details as well.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Good Service"
    HOME CREDIT INDIA FINANCE PRIVATE LTD
    0.5 5.0/5 "Blown Away!"
    I came to know about Bank bazaar through Online .This is a well known portal to each and everyone which is very useful and so far there was no difficulties faced.Customer service is very good and getting proper response.If apply for any products will get proper follow up from this portal.
    Was this review helpful? 0
    , mumbai
    Reviewed on Sep 21, 2019
  • HDFC Bank Personal Loan
    "Need to decrease interest charges"
    HDFC BANK
    0.5 2.0/5 "Expected more"
    From HDFC bank I was applied for a personal loan on few months before which was processed through an online. The verification process was smooth and received a call on time. The amount sufficient of 2 lakhs for the tenure of 3 years. Due to high interest rate I have not process for further.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Sep 21, 2019
  • review All Products
    "Satisfactory"
    HOME CREDIT INDIA FINANCE PRIVATE LTD
    0.5 5.0/5 "Blown Away!"
    I have applied for personal loan through Online and choosed Home Credit India Finance Private Limited but not taken this loan since no response from this financial source .I have got all the required information about the loan process and the rate of interest was high and not submitted any documents .
    Was this review helpful? 0
    , mumbai
    Reviewed on Sep 21, 2019
  • review Other Loan
    "Excellent Service"
    PAYTM PAYMENTS BANK LTD
    0.5 5.0/5 "Blown Away!"
    I am using Paytm service frequently for Money transfer ,Recharge and for Utility bill payment.Cash back offers are there sometime and i am using this service for the pat 1.5 years ,There was no difficulties faced on using this service.Each transaction is done on quick basis and also satisfied with the serrvice .
    Was this review helpful? 0
    , warangal
    Reviewed on Sep 21, 2019
  • ICICI Bank Credit Card
    "Excellent Service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have ICICI bank credit card which was offered through Bank .I am using this credit card for the past 6 months and the credit limit was really good and it was sufficient as well .This was a free card and there are good reward points as well as cash back offers .I have got the credit card on time without any delay .
    Was this review helpful? 0
    , warangal
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Good Service"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I got to know about Bank bazaar through Google.Everything is good on this portal and there was no difficulties faced as well .This is a better place which is providing more opportunity related all different types of financial products as well as can get comparison also before applying for any financial products .
    Was this review helpful? 0
    , warangal
    Reviewed on Sep 21, 2019
  • HDFC Bank Personal Loan
    "Good Service"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have applied for HDFC Bank personal loan through Online .I have not availed this loan since there was no requirement .I have not submitted any documents and there was good response and regular follow up from bank end as well .I have not faced any drawbacks so far when applied for this loan .
    Was this review helpful? 0
    , warangal
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Good Service"
    HDFC BANK
    0.5 3.0/5 "Satisfactory"
    I came to know about Bank bazaar through Callback.Everything is good on this portal so far and good going ,Even products which customer applied will be processed based on the requirement and customer satisfaction will be there .Customer service is really comfortable and getting good acknowledgement .
    Was this review helpful? 0
    , chandigarh
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Satisfactory"
    HDFC BANK
    0.5 3.0/5 "Satisfactory"
    One of my cousin sisters recommend about Bank Bazaar for the first time. Then I have applied for a product which I could able to compare with bank options. Just few months I am aware about Bank Bazaar. I am using the mobile application. I use to check credit score in a website.
    Was this review helpful? 0
    , bangalore
    Reviewed on Sep 21, 2019
  • HDFC Bank Personal Loan
    "Average Service"
    HDFC BANK
    0.5 1.0/5 "Really Bad"
    I have applied for HDFC Bank personal loan through Online .I have not availed this loan since there was no callback and proper follow up from bank end .I have submitted documents and there was no documents submitted and the agent gave all the information .The service was quite average according to my experience.
    Was this review helpful? 0
    , chandigarh
    Reviewed on Sep 21, 2019
  • HDFC Bank Personal Loan
    "Need to improve their service"
    HDFC BANK
    0.5 3.0/5 "Satisfactory"
    For the personal loan which was applied with HDFC bank on few months before. The interest rate was quite high for this loan. They offered for a low amount as per my requirement for the tenure period of 4 years. Since there is no response from bank end I have not process for further.
    Was this review helpful? 0
    , bangalore
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Good Service"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I came to know about Bank bazaar through Message only .This is a website which is really useful and there was no difficulties faced while using this portal since it is having huge updates about loans and credit cards which is basically required for each and every customer.
    Was this review helpful? 0
    , patiala
    Reviewed on Sep 21, 2019
  • HDFC Bank Personal Loan
    "Average Service"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I have applied for HDFC Bank personal loan through Online .I have not availed this loan since there was no requirement and the rate of interest was high .I have not submitted any documents .I have got a clear view about the loan through the agent .There was proper callback and follow up from bank end.
    Was this review helpful? 0
    , patiala
    Reviewed on Sep 21, 2019
  • Bank Bazaar Personal Loan
    "Good service"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I came to know about Bank bazaar through App only .This portal is highly beneficial since it is having huge information related to different types of financial products .App is also very useful and have more information and it is very easy to access.We can check credit score it is very much useful .
    Was this review helpful? 0
    , hyderabad
    Reviewed on Sep 21, 2019
  • HDFC Bank Personal Loan
    "Average Service"
    HDFC BANK
    0.5 3.0/5 "Satisfactory"
    I have applied for HDFC Bank personal loan through Online.I have not availed this loan since the rate of interest ans the processing fee was high .The agent gave all the required information about the loan process.There was some hidden charges also it was not informed as well.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Sep 21, 2019
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