BANGALORE: The loan market has changed a lot in the past few years. It is now extremely important for a borrower to keep tabs on the credit report issued by a widely accepted credit reporting agency like CIBIL (Credit Information Bureau (India) Ltd) to get a loan.

It is now mandatory to maintain a good credit score for getting all types of borrowings from banks, whether it is a home loan, car loan, personal loan or business loan. Let’s find out more about CIBIL score and credit report:

Do you know what CIBIL is?

Full form of CIBIL is Credit Information Bureau India Ltd. This is India’s first organization that used to collect all the loan and credit related details for an individual and maintain the same in a centralized system which can be accessed by all financial organizations, by you.  A Credit Bureau is licensed by the RBI and governed by the Credit Information Companies Act of 2005.

Means whenever someone take a credit card or loan this department track every transaction and repayment history and based on that they provide some score. This score represents your repayment credibility or honesty.

Further banks used to judge their customer based on that and allow for more loans etc. Every month this department generates a report for individual’s transaction which is called Credit Information Report (CIR) and based on that Credit Score is calculated further.