Have you ever been rejected for a loan or some other form of credit (such as a credit card) and then wondered why your case was rejected? Though a financial institution must now tell you why your application was rejected, there is a lot more that goes on behind the scenes.
CIBIL or Credit Information Bureau (India) Limited is India’s first credit information bureau and is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its Members (i.e. banks and other financial institutions) in the form of credit information reports.
I’ll let the Frequently Asked Questions explain the rest.
Awareness Fridays is my initiative to spread awareness on topics relevant to personal finance — every Friday. I urge you to take some time off and absorb this information — it’s pretty useful. And, as always, do spread the word if you find this useful.