From December, CIBIL to provide a free credit score report once a year

MUMBAI: Citizens will soon be able to get a free copy once a year of their individual credit history , based on which banks decide whether to provide a loan or not. The Credit Information Bureau of India ( CIBIL) will by December put in place an online system for individuals to download their data.

At present, borrowers have to pay Rs 550 to obtain a report from CIBIL. This payment includes Rs 100 for a credit information report, Rs 60 fee for the TransUnion Credit Score and a convenience fee of Rs 318. The rest go toward taxes. The free report will not include the credit score but will enable individuals to get an idea of their credit history submitted by banks. They will also be able to raise a dispute if the lender has submitted incorrect information to the bureau.

Speaking to TOI, Satish Pillai, MD and CEO, Cibil said that credit reports were being used more than ever before. Besides banks and finance companies who access credit history before extending loans, telecom companies allocate limits for postpaid customers based on credit scores. Insurance companies are also looking at credit scores as there is causality between credit score and claim probability.