Credit Information Companies (CICs), often known as credit bureaus, are licenced by the Reserve Bank of India to collect and retain credit data for both individuals and businesses in India. These businesses then use this data to generate credit reports and credit ratings for individual consumers across a wide range of lenders and loan kinds. Despite providing similar services, the four credit bureaus differ in significant ways. Among the four credit scores, the Cibil score online is the most widely used in India.
Currently there are 4 credit bureaus in India, that are listed below:
- TransUnion CIBIL
- Equifax
- Experian
- CRIF Highmark
1. TransUnion CIBIL
TransUnion CIBIL was founded in the year 2000 and is India’s first and most well-known credit bureau. In India, CIBIL members include all major banks, financial institutions, home financing companies, and non-banking financial organisations (NBFCs). It collects and maintains credit data on over 1000 million people and companies. Using credit information collected across its three divisions: Consumer Bureau, Commercial Bureau, and Micro Finance Institution Bureau, CIBIL generates Credit Information Reports (CIR) and CIBIL Scores for individuals and CIBIL Commercial Reports and CIBIL Ranks for commercial companies.
2. Equifax
Equifax India is a joint venture between Equifax Inc. of the United States and seven major Indian financial institutions. It was established in Mumbai in 2010 as a Credit Information Company. It aggregates credit information for individuals and corporations using Credit Information Reports and Credit Scores and offers it in a practical and intelligible format. Equifax also has a specific bureau focused on the growing lending and regulatory demands of Microfinance Institutions.
3. Experian
In 2010, Experian became the first credit bureau to be licenced under the new Credit Information Companies (Regulation) Act (CICRA) 2005. Experian India offers its own credit report and score that people and businesses can utilise. Its research, business solutions, and analytic tools can help you make informed credit decisions.
4. CRIF Highmark
CRIF Highmark, situated in Mumbai, bills itself as India’s first full-service credit bureau, offering comprehensive credit information to all sorts of borrowers in the country, including MSME (Micro Small and Medium Enterprises), retail customers, commercial, and institutional borrowers. In addition to credit reports and ratings, this credit bureau offers insights, analytics, database administration, and related software solutions to banks, MFIs, NBFCs, Housing Finance Companies, Insurance Companies, Telecom Service Providers, and others.
The secret formulas used by each bureau to calculate a person’s cibil score varies, and the exact breakdown of these components is unknown. As a result, a person’s cibil score can differ from one credit bureau to the next.
Differentiation Between The 4 Bureaus
BASIS | CIBIL | EQUIFAX | EXPERIAN | CRIF |
Registration Year | Registered in 2000 | Registered in 2010 | Established in 2006 but got licensed in 2010 | Got Licensed in 2010 |
Report Charges | CIBIL charges INR500 for a credit report.
However, you can check your CIBIL report on various websites for free. |
EQUIFAX offers one free report every year, and charges INR400 for every report after that. | It charges INR100 + taxes. For an EXPERIAN report. | CRIF report is available at INR399. |
Time Taken to Prepare Credit Report | It is available online through the CIBIL website. | If you request a complete credit report using the Equifax mobile app, you will receive it through email within one day. | The report is available online on the EXPERIAN website | CRIF report is sent instantly to your email address |
Despite the fact that the cibil score created by each of the four credit information providers varies, the credit reports and credit scores generated by each are equally authentic. Because all credit bureaus receive the same information from lenders like banks and financial institutions, this is the case. All four credit bureaus have been awarded licences by the RBI: CIBIL, Equifax, Experian, and CRIF Highmark.
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