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The number of applications for new credit registered a growth of 133 per cent in 2013 compared to the previous year, according to Credit Information Bureau (India) Ltd (CIBIL).
An increase in both credit applications and loans booked indicates a bounce-back by lending institutions in sanctioning new credit after the 2008 downturn, Arun Thukral, Managing Director, CIBIL said.
Widely usedThe CIBIL TransUnion Score has been widely used by banks and financial institutions for credit decisions. This score, assigned to a borrower, ranges from 300 to 900. Borrowers with a credit score of 700 and above have a higher chance of getting loans and credit cards. Today, almost all banks and financial institutions access CIBIL reports and scores before sanctioning a loan, he said.
This, he pointed out, has resulted in a reduction in delinquencies over the past three years, especially in retail loans.
Harshala Chandorkar, Senior Vice-President, Consumer Relations, said there has been a significant growth in consumers from metros and Tier I and II cities using CIBIL reports. This, she said, indicates the rising level of financial awareness in the country.
The company is also focussing on campus outreach programmes to educate the younger generation on the need to be financially disciplined and obtain credit at better terms, she said.
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