Top Credit Bureaus in India All You Need to KnowCredit Bureaus are agenciesthat collate and analyze data for credit transactions of individualsand business enterprises, including loans, credit cards, overdrafts etc. and their repayment schedules. Theyassess the creditworthiness and debt repayment capability of borrowers to help financial institutions evaluate the risk factor, in a better manner. Such information is collated from financial institutions and related agencies to create a credit worthy profile of the borrower, including past repayment and related financial history.
Importance of Credit Rating/Score
Credit Bureaus in India have the key purpose of analyzing financial transactions related mainly to loans and their repayment schedule, based on which credit rating or score is given to individuals/business entities. Such credit scores are critical to the overall lending process; financial institutions verify these credit scores of a borrower before disbursing loans.
Credit scores range between 300 – 900 with a score
- >= 750 considered excellent with responsible financial behavior
- 600-750 is medium with slightly risky financial behavior
- < 600 implying poor credit rating
A good credit score is essential to have hassle free access to loans.
Top Credit Bureaus in India
Six main credit bureaus in India registered under SEBI are
Credit Information Bureau India Limited (CIBIL)
CIBIL, founded in 2000 and licensed to operate in 2010, is a highly popular credit bureau in India associated with various financial institutions. CIBIL undertakes market insights, CIBIL Trans Union Score, Credit Information Report etc. for individuals; and Portfolio reports, CIBIL Bureau Analyzer for corporates. CIBIL takes nearly a week to process the report. Greater credit score increases your chances of getting credit cards or loans sanctioned with credit scores above 720 considered excellent.
Credit Rating Information Services of India Limited (CRISIL)
CRISIL is one of the oldest Indian credit bureaus, being in existence since 1987. It is a global analytical company whose services include rating companies, comprehensive market research, policy and risk advisory client services. The company has branches in Singapore, Argentina, China, Hong Kong, UK, USA, and Poland with its majority stakeholder being Standards & Poor, one of the globally reputed credit rating agencies.
Equifax was given the license to operate as afully functional credit rating agency in 2010. The bureau generates credit ratings for individuals, apart from risk and portfolio scores, with the credit scores ranging between 1 – 999. For companies, the bureau generates credit fraud reports, industry research, portfolio management, risk management and other related reports.
Experian, founded in 2006, has been functional asa fully licensed credit rating agency in India since 2010. It does individual and company analysis of credit reports, which take about 20 days to get processed and is comparatively cheaper when compared to other bureaus. Their credit rating scores are between 300-900 with 900 being the highest score. With respect to individuals, one can get their credit information to determine credit history. As for corporates, there is customer acquisition report, customer targeting and engagement, data analytics and related information.
CRIF High Mark
CRIF High Mark, established during 2007 got its license during 2010 and is the only approved bureau to operate in India by the Reserve Bank of India. It is a comprehensive credit rating bureau provides flawless services across various borrower types, includes MSMEs, commercial borrowers, etc. It provides credit rating analysis for individuals and companies with credit scoresranging between 300-850, with 720 and above being excellent score and 640 and below being poor score.
Investment Information and Credit Rating Agency (ICRA)
Originally called Investment Information and Credit Rating Agency listed on BSE and NSE in the year 2007. Mainly undertakes grading and ranking for mutual funds, corporate governance and performance-based ratings for corporates.
So, if you are in need of a Personal Loan, try on getting a free credit report from such credit bureaus to improve your chances of getting the desired loan.
Please note: SimplyCash uses multiple bureau scores for assessment