Credit Bureaus – What Do They Mean for You?
Credit bureaus are also known as Credit Information Companies (CICs) in India, are organizations which collect credit data related to loan and debt repayment history for individuals, businesses, and firms. They provide this data to financial institutions such as banks and NBFCs as personal credit score and credit report whenever an individual approaches a bank/financial institution to avail loan and as a business credit score and credit report whenever a business or a firm approaches a bank/financial institution seeking a new credit facility. A credit bureau in India is licensed by the Reserve Bank of India and governed under The Credit Information Companies (Regulation) Act, 2005 also known as CICRA 2005. The Act of 2005 was enacted to regulate CIC’s in India and facilitate efficient distribution of credit and for matters concerned with it. RBI has licensed four credit information companies in India, CRIF High Mark is one of the leading ones. These CI