The Credit Information Bureau (India) Ltd has seen a 200 per cent increase in credit applications over the last three years, with 60 per cent of new credit applications coming in from applicants aged below 40.
Sharing the data trends report here this afternoon, Harshala Chandorkar, Senior Vice-President – Consumer Relations and Communications, CIBIL, said, “The report also reveals that about 80 per cent of the credit active population reached out to CIBIL for their report to assess their credit worthiness before seeking financial accommodation. This indicates a phenomenal increase in consumer awareness of CIBIL.”
But not all applicants are eligible borrowers. Only those with a credit score of 700+ have a higher chance of getting loans and credit cards. Banks and financial institutions today consider the score a crucial parameter before sanctioning any new loan.
Financial discipline Financial discipline is crucial for maintaining good credit histories. CIBIL is trying to create financial awareness among borrowers through social media, road shows, video clippings and so on. “We are confident that this exercise would benefit both the industry and consumers,” she said.
The bureau has a database of over 33 crore consumers and 1.7 crore businesses across the country. Credit institutions check on the applicant’s CIBIL report before making lending decisions. Hence, it is imperative to maintain a healthy credit history as well as accessing CIBIL report before applying for a loan, as it improves the chances of getting a loan, she reiterated.