A common issue envisaged by the masses is the rejection of a loan application or refusal of the issuance of a credit card. There may be several reasons behind the same, but the most prominent are the details of the history of credit transactions. People fail to understand as to why they have been enlisted as defaulters and are not able to think of effective methods to get rid of such trouble.
The maintenance of the credit information of all the borrowers along with the details of their credit history in relation to various financial institutions and banks is in the hands of Credit Information Bureau (India) Limited (CIBIL).
The entire process of seeking a loan begins when a borrower goes to a bank , then the borrower’s Credit Information Report (CIR) is procured by the bank and then based on this report the borrower’s credit worthiness is ascertained and then it is finally determined as to whether the loan should be given or not. However, if a bank rejects a prospective borrower’s application on the grounds of a bad CIR then he can ask for it from the bank. It is mandatory on the part of the bank to make the CIR available to him. The borrower has to make sure that the data contained in the report is error free.
Credit Information Report (CIR)
The CIR report is an accurate and authentic report which provides a framework containing the entire credit history of the borrower. But it does not assign ranks to individuals on the basis of their credit report. CIR tracks the repayments made by the borrower in the past. This data is gathered from the various sources grating credit on the basis of a scorecard model. It saves banks from granting loans to non worthy borrowers and thereby saving them from NPAs (Non Performing Assets).
Therefore CIR is basically an important instrument which comes to the aid of banks and financial institutions. It helps them in arriving at objective and beneficial conclusions regarding credit worthiness of borrowers. It also helps the borrowers to ascertain whether their name is included in the defaulters’ list maintained by CIBIL or not. With the help of CIR loans can be availed in a simpler and speedy way.
The CIR can be accessed by every person. But in order to access ones CIR one has to make the payment of a stipulated fee. It is advisable to keep the CIR up to date and error free.
How to check CIR
The process of checking ones credit information report (CIR):
- The borrower is required to fill up a stipulated form. The form can be downloaded from CIBIL’s website easily.
- Present self attested copies of identity and address proof viz. voter id, PAN card, bank statement etc.
- A demand draft of a Rs. 142 is to be made in favour of Credit Information Bureau Limited payable at Mumbai.
- Lastly , all the documents are required to be posted at: Hoechst house, at 6th floor, Nariman point, 193 Backbay reclamation, Mumbai 400021
A control number is created whenever a bank requests for a credit report of a person from CIBIL. A control number is basically a nine digit unique number which enables CIBIL to verify the credit records of an individual.
The access to CIR is only available to the borrower and CIBIL but not to anyone else. This is possible due to the allotment of a unique nine digit CONTROL NUMBER.
This ensures the secrecy and safety of the credit history maintained by CIBIL.
As such there is no defaulter’s list maintained by CIBIL separately. It is a list of individuals who have availed credit in the past it only enlists individuals who have repaid loans on time and also those who have not.
Sometimes despite measures, errors creep in the report in such situations when a loan has been denied to you by a bank on the basis of the report, you must request the bank to provide you with the control number of the CIR. First clear all loans due, repay them and then wait for at least six months. Check whether you still are a defaulter. If you still are a defaulter then make an application to CIBIL accompanied by your details and thereafter the CIBIL will send you, your report. If in the report you are a defaulter then contact CIBIL to take care of such discrepancy.
How to remove name from defaulter’s list
Now the question arises as to how we can remove our name from CIBIL defaulter list?
The easiest and the most basic answer to this question is repay your debts and your problem will be solved i.e. repay and make good every debt whether related to loans or credit card or any other factor which negating your credit standing.