Cibil to now help borrowers get the best loan

TransUnion Cibil is now helping borrowers get the best loan available based on their credit scores and history, in possible competition with online retail loan aggregators or marketplaces.  

The oldest credit information company in the country has started Cibil Marketplace, which is a formal way of helping individual consumers secure loans, said Hrushikesh Mehta, vice president and head, Direct to Consumer Interactive at TransUnion Cibil. 

Banks will pay fees to Cibil, while customers need not pay any charges. 

So far, Cibil has tied up with 13 banks to offer retail loans like personal loans, credit cards, loan against property, home loans and business loans. 

The difference between Cibil and other marketplaces is that in the case of the latter the credit report is accessed after the customer clicks the loan offer, while in the case of Cibil the customer first checks the credit score and then applies for the loan.

When a borrower logs on to Cibil’s website to check the credit score, he has the option to apply for a loan. Then he has to submit his income and KYC details. 

Based on the credit score and other criteria, the borrower will get a list of banks that are willing to give him a loan. 

He can choose one bank and apply for the loan. The bank will then get in touch with the borrower to complete the processing of the loan. 

“Chances of the loan getting approved are higher because banks will offer the loan only to eligible borrowers. For unsecured loans credit report plays a large part in approving the loan,” said Hrushikesh Mehta.

Other market places, too, will eventually move to the pre-screening model being followed by Cibil, he added. 

While the service was launched in the pilot phase a couple of years back, Cibil has started focusing on it in the last few months after approval from the Reserve Bank of India and its stake holders, some of which are banks. 

Since February, when Cibil started offering free credit score and report as per RBI guidelines, 40,000 consumers have availed the service. About 20-35 per cent of those who checked their reports and found they were overdue paid off their debts, Mehta said.