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Find out if you are a bank defaulter!

June 03, 2014 12:39 IST

Find out if you are a bank defaulter!

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Ankit Sharma

Credit Information Report is one piece of information that can tell if you are a defaulter or not

Many people have been, at some time or the other, denied a loan or a credit card on grounds of not being eligible for the same due to bad credit history. Often people are unable to understand why their name is in the list of defaulters and ways to remove their names from the same.

The Credit Information Bureau (INDIA) Limited (CIBIL) is the central repository of credit information of all borrowers. It contains data of the credit history of all borrowers associated with the member banks/financial institutions.

When a borrower approaches a bank for loan, the bank first gathers a Credit Information Report (CIR) of the borrower from CIBIL and on the basis of that judges the credit worthiness of the borrower and decides whether to grant him credit or not.

CIR is a factual report which gives an idea on the credit payment history of the borrower which has been compiled from information collected from different credit guarantors based on a scorecard model.

It helps banks reduce the risk of bad loans on their books by lending to non-credit worthy borrowers.

A control number is generated every time a CIR is requested from CIBIL by the bank. Control number refers to a nine digit unique number which enables CIBIL to track an individual's credit report from its database.

Every time bank seeks for credit report of an individual from CIBIL, a new control number is generated.

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Photographs: Uttam Ghosh/Rediff.com

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How can one check her/his Credit Information Report (CIR)?

Every individual has the right to access her/his Credit Information Report (CIR). It is through this that a person can check and analyse whether s/he is in the defaulter list of the concerned bank or not.

CIBIL does not confer any entity/individual as defaulter. It only gives an idea about the actual credit status of the borrower. Whether an individual is to be considered a defaulter is entirely at the discretion of the concerned bank.

Borrowers can access a copy of Credit Information Report (CIR) by sending a demand draft of Rs 142 to CIBIL along with the respective control number from the bank.

The payment can also be made online. For more details, kindly refer to www.cibil.com.

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Photographs: Rediff Archives
Tags: CIR , CIBIL , NET

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The following documents are required in the process:

  • CIR Request Form
  • Identity Proof (PAN/Passport/Voter's ID)
  • Address Proof (Bank Statement/Electricity Bill/Telephone Bill)

In case if a bank refuses to provide control number, then a complaint can be filed on the website of the bank.

In case the bank does not respond to the complaint within 15 days then the individual can lodge a complaint with the banking ombudsman along with a copy of the complaint filed at the bank's website as proof.

It is to be noted that a direct complaint to banking ombudsman without registering it with the bank will be considered as invalid and not entertained.

In case a person has cleared her/his dues with the bank and the same has not been updated with CIBIL, the above mentioned process is to be followed by the person along with obtaining a no objection certificate (NOC) from the bank.


Photographs: Uttam Ghosh/Rediff.com

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