A good credit score is arguably the most important criterion for the consumer. But, what about someone who has never borrowed before? CIBIL’s (Credit Information Bureau (India) Ltd) new initiative will address this issue. The country’s first credit information company is pushing for collecting consumer data from utility service providers such as state electricity boards, water authorities and also the insurance sector and telecom service providers, to collate them to offer “a meaningful credit score” for consumers.
Speaking to media persons on the sidelines of CIBIL’s Annual Credit Information Conference here on Wednesday, its Chairman MV Nair said the company has initiated dialogues with the RBI to take it forward. “We need to discuss with industry regulators such as TRAI, IRDA and other authorities concerned to work together for the purpose,” he said. The data thus collected will help in ascertaining the financial discipline of a consumer, which in turn will help lenders get an idea about the consumer’s creditworthiness. “This will go a long way in taking forward the Government’s financial inclusion programme,” Nair said.
The industry is going through tough times and there is a considerable strain in asset quality of financial institutions, which is a major concern. For 8-11 per cent growth in economy, we need about 20-25 per cent bank credit growth. But, it is just around 11 per cent now. To facilitate such growth in credit, there has to be an efficient support system such as credit rating, he said.