CIBIL Reports : No Change in this Practice
CIBIL Negative Reports
Lenders exercise their commercial judgement to grant loan or otherwise to borrowers based on the Board-approved policies of banks and financial institutions (FIs). Information contained in Credit Information Reports (CIRs) obtained from Credit Information Companies (CICs, which include TransUnion CIBIL Limited, formerly Credit Information Bureau (India) Limited) is one of the factors in the credit appraisal process.
The decision to approve or reject a loan is taken on a holistic basis, taking into account all relevant factors forming part of the credit appraisal process, and not on the basis of CIRs alone, and as such non-approval of loan cannot be ascribed solely to defaults.
No information is maintained regarding whether a customer has become a defaulter knowingly or unknowingly. RBI has directed CICs to provide access in electronic format, upon request, one Free Full Credit Report once in a year to individuals whose credit history is available with CICs.
CICs only provide CIRs and do not provide any defaulters list. As per the reporting practice of TransUnion CIBIL Limited, amount overdue is displayed in CIR and indicates the total amount that has not been paid to the lender in a timely fashion, which includes principal and interest amount. No change in this practice, or any other steps in this regard, is under consideration of the Government.