Understanding a Credit Information Company

We create a win-win situation for both the consumer and the lender by ensuring ease of access to credit for the consumer and improving the asset quality for the lender. It is in everybody’s interests to have a strong credit economy where data is shared with licensed Credit Information Companies like us and where consumers understand the importance of maintaining a good credit repayment history. It’s therefore important for you to understand what we do, why we do it and how we work to benefit you as a credit consumer, the lenders and the wider economy as a whole. As the first Credit Information Company to be licensed under the Credit Information Companies (Regulation) Act 2005 (CICRA 2005), we are passionate about the benefits we can bring to India and are keen to de-mystify our operations.  

What is a Credit Information Company?

A Credit Information Company is an independent organisation that compiles public data, statutory information, identity information, credit transactions and payment histories of individual consumers and organisations. We store information provided by various sources in the same way as it is provided to us – we do not alter or represent the data in any other way. Similarly we do not offer opinions on the data we hold or make any decisions on behalf of lenders who use our services and reports in the credit decisioning process.   

We simply provide the data that is held about an individual borrower to the lender who will make their own assessment based on a range of factors, including the data we manage.  Accordingly it is often the case that two lenders would make two different decisions based on the same data – as they will be applying their own individual credit policies when considering credit applications. The role of a Credit Information Company is;

–To facilitate a culture of information sharing amongst lenders

–To provide accurate information to lenders

–To make it possible for lenders to quickly make fair, consistent, responsible and profitable lending decisions

–To facilitate mass market access to credit, without security

–To protect consumers against over indebtedness by providing a full picture of credit exposure and therefore capability to repay

–To help lenders guard against fraud, which is a growing and serious problem

–To provide consumers with copies of their Experian Credit Information Reports upon request

–To educate consumers on the importance of Credit Information Companies

–To promote responsible lending and responsible borrowing

Why do we need Credit Information Companies?

The International Finance Corporation (IFC), a member of the World Bank Group, acknowledges that Credit Information Companies are essential not only to individual prosperity, but also to a country's overall economic growth. Credit Information Companies provide benefits to all sectors of the credit economy;

–The Government and the Reserve Bank of India need Credit Information Companies to facilitate access to credit, driving sensible consumer spending on goods and services to the benefit of the economy as a whole

–Lenders need Credit Information Companies to assess risk and allocate credit more efficiently by making more informed decisions

–Businesses & Consumers need Credit Information Companies to gain access credit more easily and quickly, without having to rely on personal relations with the lender