Credit report of a person is an essential requirement for loan negotiation. If a customer seeking a loan has been the holder of a credit card in the past, then it is most advisable to collect his credit report from the Credit Information Bureau of India (Cibil).
This is in order to avoid any such situation wherein loan might be denied to the borrower because of his credit report, bankers say.
Cibil’s managing director, Arun Thukral says, “We provide the individual the details of their credit history on payment of a nominal fee.”
“It is advisable that borrowers who have had past loans or have had credit cards should check out their credit score with Cibil before scouting for the best loan deal available. If the report has some adverse remarks, the person should try and get the issue resolved with the concerned bank which had reported the adverse credit history,” an official working in the retail banking of the State Bank of India said.
“Buying a house is often a once-in-a-lifetime purchase. Being denied a loan could be traumatic for the person who has identified the property,” the SBI official said.
In the same context, C S Jain, head of personal banking, IDBI Bank says, “If a person has a doubt that some past defaults might find a place in the Cibil report, he or she should approach Cibil for the details. However, it might not be required for persons who are sure about their past banking history.”
Cibil maintains data of borrowers of 175 lending institutions including banks, housing finance companies, financial institutions and non-banking finance companies, among others.