Credit Information Companies in India
Money is perhaps the most powerful weapon in the world today, with the lives of billions revolving around it. While we all strive to make money, not everyone is in a position to fulfil their financial needs on their own, which is where financial institutions like banks and NBFCs come in. The credit industry is worth billions of dollars and offers credit to thousands on a daily basis, helping them meet their financial requirements.
Given the risk associated with lending money, a number of lenders depend on the reports of independent agencies, helping them mitigate risks and find suitable candidates to lend money. A Credit Information Company (CIC) is essentially an independent agency which collects, collates and aggregates data from its members (individual consumers and lending institutions) to provide information related to the credit history and creditworthiness of an individual, thereby helping lenders gauge their repayment capacity, saving time and effort for everyone involved. India is currently home to 4 such Credit Information Companies, each vying to make life simpler for their members.
The four CICs in the country are:
Comparison of the 4 Credit Information Companies in India
CIBIL, Equifax, Experian and Highmark, all work on similar principles and are alike in a number of ways. However, there are a few differences as highlighted in the table below:
|Established||2000||License granted in 2010||2006, license granted in 2010||2007, received licence in 2010|
|Report cost||Credit Report + Score for Rs 500||Credit report plus score for Rs 400||Rs 138 (Credit report only)||NA|
|Scoring system||Individuals are provided a CIBIL score between 300 and 900, with 900 being the best and 300 the lowest||Equifax scores individuals on a scale of 1 to 999, with 1 being the lowest and 999 the highest||Experian scores individuals on a scale of 1 to 999, with scores over 961 considered excellent, while scores below 560 viewed as poor||Highmark scores range from 300 to 850, with a score of 720 and above considered excellent while a score below 640 is considered poor|
|Major Products and services provided||For Consumers:
|Time it takes to receive credit report||7 days||10 days||20 days||NA|
|Advantages||Oldest among all 4 CICs, more popular||New technologies and additional services||Cost effective||New entrant offering greater variety in products and services|