CIBIL Report

The CIBIL report may appear to be the taxman's jargon or something that is meant for a financial expert. However, this is not the case. Instead, the CIBIL report is a credit score report of an individual and is referred to when the individual in question seeks any type of loan from any financial institution. 

Additional Reading: What is credit score?

Credit scores bring objectivity to the lending process and safeguard the interests of the lenders. The lending company runs a hard inquiry once a potential borrower applies for a loan or a credit card. A credit report is generated along with a credit score. The credit score report assigns a three-digit number to every potential borrower. 

This CIBIL score range of 300 and 900 is a reflection of the borrower's credit behaviour. As a thumb rule, a higher score is considered better. The CIBIL score report can be generated online without much hassle. One should check CIBIL scores and be aware of one's creditworthiness. 

The CIBIL report provides details such as previous loans and advances taken by the individual and the payment history. It carries information on different types of loans taken, be it a home loan or a credit card. It is thus a snapshot of the individual's debts taken and payments thereof. 

Additional Reading: How to read cibil report?

The CIBIL report online is one of the most important documents in any loan application form. It offers a multitude of advantages to the lending institution as well as the borrower. These are:

• The CIBIL score report provides insights to the lender about the borrower's credit behaviour. A high CIBIL score reflects a good payment track record and enhances the manager's comfort level in sanctioning the loan. 
• The same holds for the other borrower who is on the other side of the table. A high CIBIL score earned through financial discipline stands in good stead as it enhances the chances for future borrowings and thus fulfilling the financial objectives.

A high CIBIL score enables the borrower to negotiate better terms, including lower interest rates and lower processing charges with speedy approval. In doing so, the borrower improves their financial health by way of lower interest payout during the tenure of the subsequent loan.  

Additional Reading: What is Transunion Cibil Score?

The CIBIL report is a comprehensive credit-related document and comprises different sections. The information is categorized into six sections. These sections are detailed below:

• CIBIL Score - The CIBIL score assigned to the individual by the CIBIL rating agencies is reflected in the sections related to 'Accounts' and 'Enquiries' in the CIBIL report. The numeric number provides an immediate glance into the credit history of the potential borrower. 
• Personal Information – The personal information section mentions the name and carries demographic details such as the age and gender of the person. Information about important documents such as Permanent Account Number (PAN), passport, Voter ID, etc., is also available in this section. 
• Contact Information – The contact information, including the address and telephone numbers, are provided in this section. An individual can add up to four different contact addresses in this section.  
• Employment Information - This section details the income, monthly or annual, of the individual. This income is reported by the member financial institutions. Thus it may be the individual's income as reported by them in an earlier loan application form and may thus not necessarily be the latest one. 
• Account Information – The account information section lists the financial institutions with which the individual has a credit history. Along with this, details such as type of loan availed, loan account number, duration of the loan, date of availing loan, month-on-month payment detail, last payment date, and current outstanding are also mentioned in this section. 

Inquiry Information – An applicant may apply for loans and credit facilities from different financial institutions from time to time. These inquiries and transactions, including the amount and type of credit applied for, are reported in the inquiry information section and are made available to the lenders that access the individual's CIBIL report online.

Also Check: Cibil Customer Care Number

CIBIL generates different reports for individuals and companies. The Credit Information Report is generated for the former, while the CIBIL Company Credit Report (CCR) is generated for the latter.   

• Credit Information Report – Individuals may require credit to accomplish different objectives throughout their lives. The Credit Information Report, which is issued for individual loan borrowers, mentions the CIBIL score is checked by the lending institutions. 
• CIBIL Company Credit Report (CCR) – Akin to individuals, companies may also require funds from time to time. These may be required to meet working capital demands or fuel their future growth plans through capital expenditure. The lending institutions check the CCR for companies seeking credit. Since the CCR carries the previous credit behaviour of the company, it enables the lending institution to take a quick and objective decision on future lending. 

Additional Reading: How to use cibil score calculator?

The CIBIL report acts as part and parcel of an individual's life. The credit score report is a reflection of an individual's financial disciple and overall financial health. The potential to avail of further credit depends on the individual's prior credit behaviour. The CIBIL report is used by lenders before extending credit to individuals. At times, potential employers also refer to it to assess the applicant's financial acumen and credit history. In a nutshell, the CIBIL report may play a monumental role in determining what level of financial access and freedom the individual will enjoy in the future. 

Additional Reading: What is commercial cibil score?

The objective of a free CIBIL score and report is to enable the lender to make an informed decision on the applicant's loan application. However, the possibility of an error in the credit score report cannot be ruled out. It is in the best interest of the individual to periodically check CIBIL report and ensure that it is accurate. In the event of any discrepancy, the individual must get it rectified. Thankfully, rectification is possible by following the below-mentioned step-by-step procedure. 

• Step 1 – The first and foremost task is to highlight the error and bring it to the notice of concerned authorities. This can be done by filling out a dispute form which is available on the CIBIL's website.
• Step 2 – Once the online form is filled and submitted online, the dispute field status would change to "Under Dispute".
• Step 3 – At this stage, the process will be initiated whereby CIBIL will get in touch with the lending institution that has reportedly made the error in reporting the individual's credit history. The individual will be informed of the status through an email notification. 
• Step 4 – In case the discrepancy is genuine, rectification will be made. Such rectification will reflect in the individual's CIBIL report online.

Generally, disputes related to credit score reports are resolved within 30-days. 

Additional Reading: What is CRIF Cibil score?

CIBIL report is available online. The step-by-step procedure to download the CIBIL Report is: 

• Step 1: Visit the official CIBIL website
• Step 2: Navigate to the tab 'Get your CIBIL Score'. The link is available on the top right corner of the home screen.
• Step 3: Go through the available subscription plans. Create your account and make a payment. Please note, a subscription plan will enable you to get your CIBIL report and score more than once a year. Alternatively, individuals who want only one credit report per year can opt for CIBIL report. Click on the 'Free Annual CIBIL score and report' link available at the bottom of the home page. 
•  Step 4: Enter the required information and complete the online form.
•  Step 5: Enter the details of the identity document selected from the drop-down menu. The options available are PAN No., passport No., Voter ID No., Driver's license No., or Ration Card No.
•  Step 6: Answer questions regarding ongoing loans and credit cards and submit the information.

Based on your information, the credit report will be generated. While the CIBIL score will flash instantly on the screen, the CIBIL report will be sent on the registered email ID within 24 hours of the CIBIL score check online.

Additional Reading: How to increase CIBIL score fast?

The CIBIL credit report is all-inclusive documentation of the individual's past credit transactions. It details, among others, the various types of loans taken from time to time from different banks and non-banking finance corporations. Additionally, it specifies the repayments made on such borrowings. Such data is received from different lenders and is collated to generate the CIBIL report. 

It may so happen that an individual may have many previous loans with different repayment track records. A fleeting glance at all the borrowings and repayments may not enable the credit manager to correctly assess the individual's creditworthiness. The CIBIL score, which is a numeric number between 300 and 900, is aimed at overcoming this limitation. 

The score is an objective derived from the CIBIL report and helps the credit manager take an informed decision. The score of 300 is low and suggests relatively poor credit behaviour. On the contrary, the highest score of 900 establishes a clean financial track record of the individual. 

Additional Reading: Check Cibil Score by Pan Card

At the time of applying for a loan, the applicant submits various documents, including photographs, age proof, income proof, residence proof, PAN number, etc. While all these documents are evaluated to determine whether the loan can be sanctioned or not, the CIBIL report may have the most pronounced impact. 

The CIBIL report is not furnished by the applicant, but the CIBIL score and report is checked by the credit manager to safeguard the interest of the lending institution. A low CIBIL score may adversely affect the chances of availing of a loan. The loan may be rejected based on a CIBIL report, and the individual may lose out on an economic opportunity. 

Therefore, it is of paramount importance that an individual does not default on payments on any of their loans. Moreover, they should periodically check the CIBIL report online and ensure that it is error-free.

Also Check: HDFC CIBIL Score