Credit Information Bureau to target insurance, telecom firms

August 3rd, 2011 - 6:35 pm ICT by IANS  

Chennai, Aug 3 (IANS) Credit history vendor Credit Information Bureau India Ltd (CIBIL) Wednesday said it will focus on providing data to insurance and telecom sectors for growing its business.

“We have decided to focus on insurance and telecom sectors for growing our membership base. A life insurance company can decide the value of insurance coverage based on the data available with us about an individual,” the company’s managing director Arun Thukral told reporters here.

Similarly, telecom companies can use the credit data to enhance talk time or other offerings, he added.

Currently, CIBIL has over 600 members comprising banks, non-banking financial companies (NBFCs), housing finance companies, state financial corporations and credit card players.

Thukral said the company is also looking at co-operative banks to boost its membership base.

CIBIL gets the credit data about individuals and companies from its members, who are basically loan givers, and in turn sells credit information reports.

According to Thukral, many big corporates are demanding credit information reports from their prospective vendors before signing up a business deal.

He said CIBIL has around 7.5 million commercial credit records, out of which nearly 80 percent pertain to small and medium enterprises (SME) segment.

CIBIL is also getting good response for its Direct Consumer Access service, whereby an individual can get his credit report by paying Rs.450.

Thukral said that by obtaining his credit report, an individual will be in a position to negotiate interest rates with a prospective lender.

Queried about the data integrity, he said: “We get credit data from our members. If some information is wrong, then the affected person will have to take it up with the lending institution.”

He said that till date CIBIL has not faced any legal suit for its credit reports based on inaccurate data provided by credit institutions.

According to him, those with a credit score of over 800 points are good for lending, while the probability of default by people having a score of 500 and below is high.

He said CIBIL has set up a new team to mine data and prepare various kinds of research reports for its members.

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