How to Read a CIBIL Report ?

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What is a CIBIL Score?

CIBIL Score plays a very important role in a loan approval process. The loan financier predicts borrower’s repayment capacity from his past credit usage and repayment records. An individual’s CIBIL Score ranges between 300 to 900.

Understanding CIBIL Report

A Credit Information Report (CIR) contains detailed personal and financial information available with CIBIL. Let’s understand the format and some basic terms & abbreviations of CIR.

The CIBIL report is comprised of 6 sections:

  1. 1. CIBIL Score:
    Based on past repayment history, the individual score is defined.
  2. 2. Personal Details:
    includes Name, Date of Birth, PAN, Voter ID etc.
  3. 3. Contact Information:
    consists of Address, Email Id & Phone Number.
  4. 4. Employment Information:
    most recent information related to Income and Occupation.

  5. 5. Account Information:
    covers details of credit facilities and loan repayment history.
  6. 6. Enquiry Information:
    includes list of lenders who have enquired about borrower.

Important CIBIL Report Terms

  1. 1. Amount Overdue:
    is the total amount borrower did not pay to lender timely.
  2. 2. DPD (Days Past Due):
    shows the number of days passed since the due date of payment.
  3. 3. CN (Control Number):
    is CIBIL report number and helpful in case of dispute resolution.
  4. 4. Settlement Amount:
    is the amount mutually agreed upon by lender and borrower for repayment purpose, generally in case of disputed loan account.
  5. 5. Written off Amount:
    reflects total interest and principal amount written-off by lender.

Abbreviations

  1. 1. 000:
    means a customer has paid his dues on time.
  2. 2. XXX:
    means information related to given month has not been reported by lender.
  3. 3. STD (Standard):
    The borrower has done payment within 90 days.
  4. 4. SMA (Special Mention Account):
    The borrower has done payment after 90 days. The asset is moving towards substandard.
  5. 5. SUB (Sub Standard):
    The account was classified under NPA for 12 months.
  6. 6. DBT (Doubtful):
    The account was in the sub-standard category for 12 months.
  7. 7. LSS (Loss):
    The loss has been identified and customer payment is uncollectable till date.

(Please note: If the payment is not received even after 90 days, then the account is termed as NPA; any term other than ‘000’ or ‘XXX’ is usually considered negative by lenders)

Conclusion

A CIBIL score helps lender to determine the creditworthiness of the borrower. Any inconsistency in CIBIL report will reduce loan approval chances. Any score above 750 is considered as a good score.

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