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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  • review Personal Loan
    "Need to decrease interest rate "
    BAJAJ FINANCE LIMITED
    0.5 4.0/5 "Great!"
    BAJAJ FINANCE has offered a pre approved personal loan offer and I accepted for the same. I have taken this loan 2 months back. The process was smooth and submitted required docuemtns within 1.5 hrs amount was credited to my account with 1.64L with tenure period of 4 years. The rate of interest is 18% which is high. Fee was deducted of 9K. There is pre closure option after 30 days with charge of 4%. EMI need to pay the amount of 4K. The best which I would like to say is online process was done with short term.
    Was this review helpful? 16
    , chennai
    Reviewed on Mar 21, 2020
  • ICICI Bank
    ICICI Bank Personal Loan
    "Good service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    The tenure for ICICI personal loan is for 3 years, I have taken the loan for some personal purposes. I got my loan statements on time but the interest rate of the loan is 12% which is bit high for me. I wish the bank can reduce it up to 10%. Otherwise everything is good about the loan.
    Was this review helpful? 12
    , hyderabad
    Reviewed on Mar 21, 2020
  • RBL Bank Credit Card
    "Easy to convert for EMI "
    RATNAKAR BANK
    0.5 4.0/5 "Great!"
    I got RBL card offer from BAJAJ Finance. I have been using this card past 10 months which is a life time free card. The credit limit is sufficient of 55K. EMI conversion is avail and I can convert via mobile app whenever required with nominal charge. I use this card for general purpose. Based on usage I get points but not yet redeem it.
    Was this review helpful? 24
    , chennai
    Reviewed on Mar 21, 2020
  • SBI Cards Credit Card
    "Good service"
    SBI CARDS
    0.5 4.0/5 "Great!"
    SBI credit card have offers and reward points but I have not redeem them yet, this is a domestic card, the credit limit is of 50000 which I am very much satisfied as per my need. I got my statement on time. I used this card for personal purposes.The card is very user friendly.
    Was this review helpful? 30
    , hyderabad
    Reviewed on Mar 21, 2020
  • SBI Cards Credit Card
    "Ok service"
    SBI CARDS
    0.5 5.0/5 "Blown Away!"
    I am using SBI credit card for more than three months, there are some reward points and offers in the card. I used this card for online shopping, fuel surcharge and groceries.The credit limit of the card is sufficient and I like the most about the card is that it is a life time free card and very good to use.
    Was this review helpful? 23
    , hyderabad
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Ok service"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    The bank agent suggest me to take credit card from INDUSIND and I have taken it because it doesn't have any annual fee. The offer and reward points are available in the card are good. I am satisfied with the limit of the card. I used the card for general purposes. But it will be nice, if the offers and reward points will be more.
    Was this review helpful? 12
    , jaipur
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Good service"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    I am using INDUSIND credit card for 3 months. The card have no offers available and also there is no rewards. The only benefit is that its a life time free card and the credit limit is only for 75000 I am not that satisfied as i expected to get around 1.5 lakh. Apart from the limit over all experience is good.
    Was this review helpful? 13
    , chennai
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Excellent card"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    I have got INDUSIND credit card few months ago and I have used it for two months now ,the credit limit of the card is Rs.70000 which is a life time free card. The bank have informed me every details about the reward points and offers but I have not got any time check it. I am satisfied with their card service.
    Was this review helpful? 15
    , hyderabad
    Reviewed on Mar 21, 2020
  • ICICI Bank Credit Card
    "Good service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    Am having ICICI credit card for two years, I feel good and have not face any issues. The best part about the card is its a life time free card. I used to get my card statement on time. I used this card for shopping, groceries and for many other personal purposes.I am using the bank mobile app which function smooth and simple.
    Was this review helpful? 19
    , faridabad
    Reviewed on Mar 21, 2020
  • SBI Cards Credit Card
    "Good service"
    SBI CARDS
    0.5 5.0/5 "Blown Away!"
    I have used SBI credit card for 2-3 months, but I have not got any time to check about the offers available in the card. The limit of the card is 38000 and I am satisfied because its a life time free card. I used to get my card statement on time and the net banking is also working very well.
    Was this review helpful? 29
    , faridabad
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Good service "
    INDUSIND BANK LTD
    0.5 4.0/5 "Great!"
    Since it is a life time free card offer from INDUSIND so I chosen it and applied through online. I received a call on time and they have done the verification process. Hence I received the card by 7 days, the credit limit is okay for me. Its easy to use for all purposes.
    Was this review helpful? 11
    , chennai
    Reviewed on Mar 21, 2020
  • Citibank Credit Card
    "Good "
    CITIBANK
    0.5 4.0/5 "Great!"
    CITI has provided good offers and benefits on 2 months before. So I chosen this card and applied through online. It is annual fee chargeable of 500 rupees bu there is waiver off option if I spend 30K within a year. The credit limit is 65K. There is EMI conversion avail for this card.
    Was this review helpful? 10
    , coimbatore
    Reviewed on Mar 21, 2020
  • HDFC Bank Credit Card
    "very good"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have used credit card from HDFC bank for 1 year which is very good and also very comfortable, its a life time free card and lots of offers are available in the card. This card was suggested to me by my colleague. Mobile banking also functions very smooth.
    Was this review helpful? 29
    , bangalore
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Average service"
    INDUSIND BANK LTD
    0.5 4.0/5 "Great!"
    INDUSIND bank credit card have an credit limit of of Rs.75000, there is no offers available in the card and it also have a charges of 3000 along with GST. I hardly receive any remainder messages for my bill payment due to that some time I could not pay my bill on time. I would advise them send my bill on time before the due date.
    Was this review helpful? 12
    , bangalore
    Reviewed on Mar 21, 2020
  • Axis Bank Car Loan
    "Average"
    AXIS BANK
    0.5 4.0/5 "Great!"
    Through showroom got suggestion to take a car loan from AXIS bank. I taken this loan on 3 years back. I got the loan amount of 4L with tenure period of 4 years. The rate of interest was okay. I done the down payment of around 1.5L. EMI need to pay of 10,500 rupees. The car model is Swift Dzire. I taken for commercial purpose based on amount which I get on monthly doing the EMI payment.
    Was this review helpful? 11
    , kolkata
    Reviewed on Mar 21, 2020
  • ICICI Bank Credit Card
    "Need to increase the credit limit "
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have been using ICICI card for more than one year. They have provided an annual fee chargeable card and waiver off option is applicable. The credit limit is okay of 50K. Since I need to do purchase about 45K on some of the month so this limit is not sufficient. I swipe the card for travel, shopping and fuel purposes. I have not opted for EMI conversion.
    Was this review helpful? 14
    , kolkata
    Reviewed on Mar 21, 2020
  • Axis Bank Credit Card
    "Good card"
    AXIS BANK
    0.5 4.0/5 "Great!"
    I have been using AXIS bank credit card for 3 years, Its a life time free card so I applied the card through bank. The agent have informed me everything about the card. I used to get offers of 10% on petrol bunk and shopping.The limit of the card is Rs.45000 and I used to pay my bill directly through bank.I am also using their net banking which is very good.
    Was this review helpful? 22
    , kolkata
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Good service"
    INDUSIND BANK LTD
    0.5 4.0/5 "Great!"
    I got INDUSIND credit card from few months ago.The card have an EMI conversion. I used the card for multi purposes like shopping, online payment, ticket booking. This is annually chargeable card, I am not satisfied with the credit limit of Rs.75000 as I am expecting more than than 1 lakh.
    Was this review helpful? 15
    , kolkata
    Reviewed on Mar 21, 2020
  • IndusInd Bank Credit Card
    "Excellent"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    I got a life time free card offer from INDUSIND bank hence applied through online on three months back. I received the call on time and the process was done on smooth. I got the card on exact time frame. The credit limit is sufficient and they provided good offers and benefit as well.I use this card for shopping and travel purpose.
    Was this review helpful? 6
    , kolkata
    Reviewed on Mar 21, 2020
  • RBL Bank Credit Card
    "Average service"
    RATNAKAR BANK
    0.5 1.0/5 "Really Bad"
    RBL credit card is a chargeable card, I always have to go to Bajaj Finance to pay my credit card bill. I am not satisfied with the customer service which has to be improved. I used this card when ever needed for shopping, fuel surcharge and bill payment.The limit of the card is fine.
    Was this review helpful? 35
    , ranchi
    Reviewed on Mar 21, 2020
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