In India, there are three credit rating agencies namely CIBIL (Credit Information Bureau (India) Ltd), Equifax India and Experian India. These agencies collect regular information about an entity from creditors, lenders, utilities and other debt collectors and process the data into a readable and usable form and provide credit information reports on individual consumers for lenders. These credit reports play a critical role in the loan application process. Therefore it’s important to know and monitor your credit score on a regular basis to check for any inaccuracies.
The credit report consists of information such as name, age, address, list of credit facilities, repayment track record and a credit score. This information helps lenders assess the credit worthiness of their borrowers and their ability to pay back a loan if granted. If the credit score is low, the lender may not even consider the application further. If the credit score is high, the lender will consider other details to determine if the applicant is credit-worthy.