cibil-credit-score

How BankBazaar and Wishfin are Transforming Lending / Financial Savings / Insurance for Gen Next?

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Smartphone penetration, availability of cheaper 3G/4G Data Plans along with idiosyncratic events like demonetization offered have transformed how gen next India financially transacts leading to higher traction on Platforms such as BankBazaar and Wishfin. They are an intermediary between the end consumer (who wishes to purchase a product, physical or financial) and financiers (banks, insurance, AMCs).

Digital platform penetration for sourcing loans and cards is expected to grow in the next 10 years to 60% from 15%. The number of visits to bankbazaar.com grew from 3 mn visits a month to 40 mn visits in a span of three years so is the exponential rise in traffic to Wishfin. Both have a strong online market presence and work with all the leading financial institutions in India.

The typical customer that visits

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What According to CIBIL is Credit Hungry Behavior of a Consumer ?

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What According to CIBIL is the meaning of “Credit Hungry Consumers” ?
India’s leading credit bureau, CIBIL which manages your credit history and credit score along with global leader Transunion has devised a word – Credit Hungry Behavior for Consumers who makes frequent loan applications [Personal Loan, Auto Loan, Credit Card, etc], as there will be a Credit Inquiry every time an application is made. This sends a negative signal for money lending institutions about the consumer credit profile. In such a case institutions who have already extended loan are likely to raise Interest Rates, Fees or EMI so as to secure their own funds.

To Explain the same, have a look at the following,

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CIBIL Reaches 300 Million Accounts, Defaulters Beware

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CIBIL 300 Million Accounts CIBIL , India’s premier credit bureau, has become a game changer for retail credit – the backbone of high-quality retail growth. CIBIL is probably one of the less-appreciated success stories of India’s financial sector evolution. It is today, probably the back-bone of the relatively high-quality and disciplined retail credit build out in India.

Satish Pillai, COO of CIBIL has shared some interesting insights, CIBIL has 160m credit accounts (300m product accounts). 90% of new retail credits are backed by

Read moreCIBIL Reaches 300 Million Accounts, Defaulters Beware

What is the Co-Relation Between CIBIL Credit Score & Loan Sanction ?

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CIBIL CardBhai Interaction on Loan Approval & Credit ScoreThe demand for loans in India for various products, including home and auto loans from banks and other financial institutions in India, has grown a sharp 150% since 2010, according to CIBIL. As India’s largest credit information company, CIBIL has 930 credit institutions as its members and maintains information on over 290 million consumer trades and 14 million commercial trades

What are the hit rates on CIBIL? Have they gone up?

Private Banks Ride Retail Credit Lending Boom backed by CIBIL,Experian & Equifax

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CIBIL Credit Bureau Conference IndiaIndian private sector banks are focused on retail lending, largely on account of process-driven lower turnaround time for lending decisions in the retail segment. Bureaus such as CIBIL, Experian and Equifax have played a key role in meaningfully reducing the probability of adverse selection by lenders, facilitating more sensible targeting and deeper mining of existing customer relationships. However, in the current cycle, the thrust is equally split between secured and unsecured (50:50) in contrast to 2007 where the mix was skewed towards unsecured (nearly 70%-80% of the proposals during 2007 were unsecured in nature).

Indian Credit Bureaus, CIBIL, Experian and Equifax also believes that banks are more comfortable in disbursing top-up loans on an existing loan product resulting in rising leverage,

Read morePrivate Banks Ride Retail Credit Lending Boom backed by CIBIL,Experian & Equifax

Indian Private Banks Rely on CIBIL Data Repositories for Lending / Monitoring

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Private BanksIndian Private banks have a deeper usage of data than PSU banks. Some PSUs banks are big users of the credit bureau and there are others which are still learning to integrate the systems. The critical issue faced by PSU banks is digitalisation of documents and providing the same to CIBIL.

To increase the scope and to have early warning systems in place, CIBIL is working towards including Self Help Groups / Micro-finance Institutions to give information, as they are generally the first

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