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. CIBIL Score:
Based on past repayment history, the individual score is defined.
- 2. Personal Details:
includes Name, Date of Birth, PAN, Voter ID etc.
3. Contact Information:
consists of Address, Email Id & Phone Number.
4. Employment Information:
most recent information related to Income and Occupation.
5. Account Information:
covers details of credit facilities and loan repayment history.
6. Enquiry Information:
includes list of lenders who have enquired about borrower.
Important CIBIL Report Terms
- 1. Amount Overdue:
is the total amount borrower did not pay to lender timely.
- 2. DPD (Days Past Due):
shows the number of days passed since the due date of payment.
3. CN (Control Number):
is CIBIL report number and helpful in case of dispute resolution.
4. Settlement Amount:
is the amount mutually agreed upon by lender and borrower for repayment purpose, generally in case of disputed loan account.
5. Written off Amount:
reflects total interest and principal amount written-off by lender.
- 1. 000:
means a customer has paid his dues on time.
- 2. XXX:
means information related to given month has not been reported by lender.
3. STD (Standard):
The borrower has done payment within 90 days.
4. SMA (Special Mention Account):
The borrower has done payment after 90 days. The asset is moving towards substandard.
5. SUB (Sub Standard):
The account was classified under NPA for 12 months.
6. DBT (Doubtful):
The account was in the sub-standard category for 12 months.
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)
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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