Learn How to Read CIBIL Report

Loans have become a basic necessity for arranging short-term and long-term finance in today’s uncertain times. A key criterion considered by lenders granting loans is the borrower’s CIBIL score, which forms part of the CIBIL Report. Lenders prefer giving loans to borrowers with a good CIBIL score. As such, a CIBIL report is a very important document for a borrower, which determines their creditworthiness for availing future loans. This makes it important that a borrower knows how to read and interpret the CIBIL Report.
 
To begin with, let us explore the key aspects of a CIBIL Report and the significance of the CIBIL score in the report.
 

What is a CIBIL Score?

A CIBIL score or credit score is a 3-digit numeric score generated by CIBIL, a top credit bureau in India. It forms a part of the comprehensive Credit Information Report (CIR) also known as CIBIL Report. A CIBIL score is calculated based on the potential borrower’s credit history. It helps lenders in evaluating the borrower’s creditworthiness and financial capability towards repaying potential loans in a timely manner. As such, a CIBIL report is a very important document considered by lenders before granting any potential loan based on the borrower’s CIBIL score.

What is a good CIBIL Score?

A good CIBIL score is a score that ranges higher in hundreds whereas a low CIBIL score is the opposite that most of the lenders do not approve of due to the low figure. Hence, maintain a balanced score for instant loan approval.

Learn how to read CIBIL Report

The CIBIL report consists of Account Segment and Enquiry Segment.
 

1. Account Segment

 

• Personal Attributes

  This section contains details of the credit facilities, including
  • Lender name
  • Type of credit facilities availed including home loan, personal loan, etc.,
  • Account numbers
  • Mode of holding
  • Account opening date
  • Amount of loan
  • Date of last loan payment, and so on

 

• Account Specifics

  This section provides details including
  • Name of the lender
  • Account number
  • Type of accounts like a credit card, personal loan, and so on
  • Account ownership
  • Account opening and closing date
  • The final date when details get reported with CIBIL, i.e., facts should be accurate

 

• Account Status

  This section relates to the status of your loan, including
  • Whether the account is settled, indicating partial payment gets done against the loan outstanding, or
  • Written off – implying payments not made for 180+ days and thus gets reported in the report

 

• Days Past Due (DPD) for each loan/credit availed

• DPD implies a number of days the payment on that account is running late for that month.

 

1. Enquiry Segment

This section relates to loan application details. An enquiry indicates that lenders have requested CIBIL for your credit. In case, multiple enquiries are requested within a short time duration, this will make lenders cautious with respect to your behavior for availing excess credit.

Borrowers should carefully read their CIBIL Report to check for any inaccuracies or errors with respect to their particulars in the report. They should immediately get it rectified with the credit bureau, as it could impact their credit score.
 
Get going!! Ensure that the particulars in your CIBIL Report are accurate and now avail instant loans easily.
 
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