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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  • HDFC Bank Personal Loan
    "Need to imrpove their service"
    HDFC BANK
    0.5 4.0/5 "Great!"
    I got a call on time from HDFC bank. The process was done on smooth so they have sanctioned the loan within 3 days. As of now the amount is sufficient with tenure period of 5 years. Interest rate of 11% and fee of around of 10K with insurance which is high. EMI use to pay of 10,900 rupees. They have provided option for pre closure with charge of 4% which I have neglected it.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • Axis Bank
    Axis Bank Credit Card
    "Average service"
    AXIS BANK
    0.5 5.0/5 "Blown Away!"
    I am using AXIS BANK credit card for past 1 year. Rate of interest is basically high for EMI conversion. I have a credit limit of 50K, which is not sufficient. The limit is enhanced yet. It is a annual fee charges is Rs.500. The customer support response is good.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2020
  • Shubh Loans Personal Loan
    "Average service"
    SHUBH LOANS
    0.5 5.0/5 "Blown Away!"
    There is no option to close the loan before 12 EMI, this is a drawback and I am not aware of the charges. I have opted for loan amount Rs.85K from shubh personal loan. The interest rate is very high and it took around 15 days for loan disbursement.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2020
  • review Saving Account
    "Good Banking Service"
    YES BANK
    0.5 3.5/5 "Pretty good"
    I have started using YES bank salary account on one month before. Their app is not working properly because when i do my first payment, it took almost 24 hours hence they need to improve their app. They are sending the statements on time. I haven't tried the Internet banking facility. I spoke with the customer care person to know about the customer ID number and they were very helpful.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2020
  • HDFC Bank Credit Card
    "Awesome Card"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I got a call from HDFC bank agent and they have processed my card request and it was very helpful for converting my purchase into EMI. I was not able to generate the pin number immediately and it took almost 2 days. I highly recommend this card. Since my loan is running with this bank. So I have chosen the same bank. If i do any bill payment from this card, they are giving 5% cash back.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2020
  • review Consumer Durable Loan
    "Need to improve in approval process "
    TATA CAPITAL LIMITED
    0.5 3.0/5 "Satisfactory"
    I have taken a consumer durable loan from TATA CAPITAL and the loan amount of Rs. 48K with no cost of interest. The tenure period of 8 months. It is fully paid and emi of Rs. 4000 and I got this offer from other channel. The process was delay to approve and took long time to complete it.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 18, 2020
  • HDFC Bank Personal Loan
    "Helpful loan at the right time"
    HDFC BANK
    0.5 4.0/5 "Great!"
    HDFC bank is very helpful in getting the loan on time and its a branded bank so that i availed the personal loan from them. I got an interest rate of 12% for the loan amount of Rs. 1 lakh. They have taken 15 days to sanctioned this loan. If i want to close the loan, I can do it after 1 year and i don't need to pay any extra charges.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2020
  • review Other Loan
    "Need to improve their service"
    CANARA BANK
    0.5 1.0/5 "Really Bad"
    CANARA bank service is not much good. The bank manager has made forcefully to take business loan on 5 years before. Since he has target to complete at that time. The amount of 15K was detected from this loan. Use to pay EMI amount. I am not aware much details about it.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 18, 2020
  • Shubh Loans Personal Loan
    "Convenient and easy"
    SHUBH LOANS
    0.5 5.0/5 "Blown Away!"
    I have taken a personal loan from SHUBH Loans and the customer service was good so no disappointment at any time. The loan amount was Rs. 80K and the interest I think it is 18% but I am happy. I have taken a tenure of 24 months and I am paying Rs. 4,500. The documentation process pretty easy which I had applied through online.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 18, 2020
  • SBI Cards Credit Card
    "Good "
    SBI CARDS
    0.5 4.0/5 "Great!"
    I have been holding SBI credit card more than 6 months. Applied through bank directly. The credit limit of 1.10L which is low when compared to my needs. It is Bharat petroleum card mostly I use this card for fuel purpose. Based on usage I get good reward points.
    Was this review helpful? 0
    , pune
    Reviewed on Jan 18, 2020
  • SBI Saving Account
    "Best savings account"
    STATE BANK OF INDIA
    0.5 4.5/5 "Excellent!"
    I am doing all my transactions through SBI . Its been 2.5 years I am using salary cum saving account. There is no requirement for minimum balance but am keeping some balance on a monthly basis. The branch is near by to my residence and also the customer service was good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • SBI Personal Loan
    "Need to decrease the rate of interest"
    STATE BANK OF INDIA
    0.5 4.5/5 "Excellent!"
    I have applied a personal loan from SBI and the loan amount was Rs. 1.25L and the interest rate was 14% it is high actually. I applied this loan directly from bank and I am paying Rs. 4000 with the tenure of 4 years. I am not getting any alert message, call or even mail also.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • Shubh Loans Personal Loan
    "Good service"
    SHUBH LOANS
    0.5 3.0/5 "Satisfactory"
    The process was smooth and received the loan amount with in 1 week from shubh loans. The rate of interest is not mentioned separately. I have taken a loan amount of 50K, I am paying the EMI of 2700 for 24 months. Processing fee is also high. Customer support response is good
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2020
  • American Express Credit Card
    "Good Card"
    AMERICAN EXPRESS BANKING CORPORATION
    0.5 4.0/5 "Great!"
    Amex app is not that much interactive and i cannot convert my purchase into EMI and i can just check the balance on their application. I have been using this card for almost 9 months. There is a limitation in using the card in some of the shops. They have a more rate of interest when i swipe the card. When i call the customer service, they were polite and helpful.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 18, 2020
  • Incred Personal Loan
    "Need auto debit option "
    INCRED
    0.5 5.0/5 "Blown Away!"
    I have applied a personal loan from INCRED. Customer service not yet contacted and the documentation was simple their person came and collected. The loan which i have applied for Rs.1.45L but it got credited only Rs.1.3L and the amount of 7k was taken for processing fee. When i tried calling for customer care, they were unable to reach. My first EMI started and the premium mode is ECS on 5th of every month. I deposited cash 1st Jan itself but it was not debited so i uploaded application and i have paid manually but they charged 590rupees extra. I mailed regarding the same and got the reply that amount will credited within 48 hrs, though it was a national holiday . First month EMI itself they doing like this need to work on the service.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • IndusInd Bank Credit Card
    "Good card and app is good"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    There is no reason for choosing the credit card from Indusind bank and i don't worry about the benefits because i use the card for my personal loan. If they are increasing the credit limit it would be okay but still I'm not crossed 6 months on using this card. Its easy to connect with the call centre people. I used their app recently for EMI conversion and i don't find any problem on that.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 18, 2020
  • Citibank Personal Loan
    "Need to provide less of locking period and EMI date on time"
    CITIBANK
    0.5 4.5/5 "Excellent!"
    I had applied a personal loan on 3 months back from CITI bank through online. The process was delay, because once the executive has collected the documents and took 2 weeks to sanctioned the loan. Tenure period of 4 years. Interest of 11.99% and fee of 5K. After one year pre closure is avail with 3% charges. EMI use to pay of 16,008 rupees and I get remainder mail on time from their end. They use to detect EMI amount 1st of the month which I would suggest to change on 1st week of month.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • Incred Personal Loan
    "Best service"
    INCRED
    0.5 5.0/5 "Blown Away!"
    I have taken a personal loan of Rs.1.2L from Incred which I applied through online. The process was easy and the loan amount credited with in 2 days. The rate of interest and the processing fee is is normal charged around Rs.6000 which is debited from the loan amount. On every month of 5th need to pay EMI of Rs.6,327, it will be auto debited from my account.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 18, 2020
  • SBI Saving Account
    "Best savings account"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    My salary account is maintained in State Bank of India nearly 28 years and till now there was no issues. The rate of interest is very less for the loans and there is no hidden charges. Moreover i am using the online service which is very good. Customer service was not good, need to improve.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jan 18, 2020
  • Citibank Personal Loan
    "Need to be process at earlier"
    CITIBANK
    0.5 3.0/5 "Satisfactory"
    I have applied a personal loan with CITI bank through online. The process was rigorous and lengthy. They have not inform in prior to provide required documents. But their service is good. They have sanctioned the loan within 5 days. I use to get remainder message on time for EMI amount to pay of 12K. Preclosure option is avail but after one year.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2020
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