Credit Bureaus in India
In today’s world, most of the transactions conducted by people are through an online medium involving banks and other entities. Hence it is very much essential to make sure that a person is very well known and kept track of so that they don’t misuse the funds provided by these institutions for their need. Thus, some agencies help to keep this and make it easier for financial institutions.
What are Credit Bureaus?
In simple terms, Credit Bureaus can be explained as an organization that collects all the data about credits, debts, and bills paid by an individual over time. This data is analyzed and studied well to see if an individual pays their due amount in time. This helps to understand if an individual can be trusted financially, and thereby the financial institutions can lend money to an individual on the basis of this data.
If any financial institutions or individuals want this data, they can get it by paying a small nominal fee to the credit bureau agency. However, it is to be noted that this should not be a basis on which any organization should depend while giving out money to any individual. This is just for reference and safekeeping to establish an individual’s trustworthiness.
What is Credit Score?
A credit score can be considered a number used to determine an individual’s trustworthiness in regard to financial words. Mostly this number is in the range of 350 to 850, and the higher the score, the better the score. This score is taken by financial institutions while giving out loans or credits, and if the score is better, the chances of getting better offers from the institutions.
Top Credit Bureaus in India
Credit Bureau agencies have been running since the early 19th century; however, in the year 2000, the Reserve Bank of India approved them, and these agencies now operate under the SEBI (Securities and Exchange Board of India) guidelines.
Experian is one of India’s top Credit Bureau agencies, which keeps a tab on credit reports of large groups of people. The data from Experian has been said to be of good quality and can be used by both enterprise businesses and individuals. Experian started its venture in India in 2006 and has quickly made its name in the top Credit Bureaus of the country. The amount for obtaining data from Experian is INR 550, and the process takes as much as 20 days.
The Credit Score rating by Experian is in the range of 300 to 900, wherein 900 is considered the most trusted individual in terms of finance.
Trans Union Credit Information Bureau (India) Limited, also commonly known as CIBIL, is India’s largest credit bureau agency that has data on many people. Many big and small institutions also depend on the credit rating given by CIBIL before issuing a credit to an individual. CIBIL was established in 2010 and got its license as well from RBI. The credit rating in the CIBIL bureau ranges from 300 to 900, wherein a score above 720 is considered quite good. CIBIL keeps a tab on individuals as well as big institutions as well with their credit ratings. The nominal fee for obtaining a credit report from CIBIL is INR 550.
CRIF High Mark
Another top credit bureau in India is CRIF High Mark which has been operating since 2010. The credit rating score in CRIF is in the range of 300 to 850, and the nominal fee for obtaining data from this organization is INR 399, which includes GST as well. CRIF High Mark has data on individuals, large and small industries, and commercial borrowers.
Equifax is one of the oldest credit-giving companies, established in early 1899 and became a credit bureau in 2010 after obtaining its license from RBI & one of the biggest names worldwide and is said to have data of more than a billion people.
The nominal fee for obtaining data is INR 400, including the GST charge as well. The Credit Score rating ranges from 1 to 999, wherein 999 is the highest and most trusted.
Overall, credit bureaus help many financial institutions and individuals to learn about their customers before they can offer monetary help. This also helps an individual to secure faster loans as a better score. The better chances are in securing loans at good interest rates as well. All of the 4 credit bureau agencies are recognized by RBI and follow all the necessary guidelines.
Credit Bureaus in India FAQs:
1. Are credit bureaus regulated in India?
2. How do contact credit bureaus for data of an individual or an organisation?
3. How do credit bureaus make money?
4. Can one make important financial decisions from data they got from credit bureaus?
5. How to notify credit bureaus of death so that the account for that individual is closed?
6. Which are the top credit bureaus in India?
7. Does having a good Credit Score help you secure an easy loan?
8. What is a Good Credit Score?
9. Can credit bureaus remove negative Credit Scores?
10. Are credit bureaus open on weekends?
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