Credit bureaus are companies that collect and organise information about how people use credit, such as loans, credit cards, and payment history. They generate credit reports and scores, which reflect the creditworthiness of the consumers. Lenders use these reports and scores to evaluate the risk and likelihood of timely loan repayment by the borrowers. Credit bureaus play a significant role in the financial system, as they help to prevent bad loans, fraud, and promote financial inclusion.
In India, there are four credit bureaus or Credit Information Companies (CICs) that are licensed by the Reserve Bank of India (RBI). They are TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. Each of these credit bureaus has its history, features, and services. In this blog, we will explore the list of top credit bureaus in India, compare their differences, and understand how they work.
- What is a Credit Bureau?
- List of Top Credit Bureaus in India
- Comparing Top Credit Bureaus in India
- Overview of Credit Bureaus in India
- How Do Credit Bureaus in India Work?
- What Sort of Information Do Credit Bureaus Collect?
- Are Credit Rating Agencies and Credit Bureaus the Same?
- Are Credit Scores from All Credit Information Companies Same?
- FAQs | Credit Bureaus in India
What is a Credit Bureau?
When you want to borrow money, the bank or company you’re asking for a loan from checks your credit history. They get this information from a credit bureau that collects and organises details about how you’ve used credit in the past.
These credit bureaus make reports that show your credit history. These reports are used by lenders such as financial individuals, banks, etc., to figure out if you’re trustworthy.. The reports also help create credit scores, which are numbers that summarise your credit history. These scores help the lender decide whether you can get a loan or a credit card. They also influence how much money you can borrow and the interest rates.
All four credit bureaus in India are licensed by RBI- Reserve Bank of India.
What is a Credit Score?
A credit score is a number that indicates the creditworthiness of an individual to lenders, such as banks and NBFCs. Banks and other money-lending companies use this information to decide if a person can be trusted to pay back borrowed money on time. In India, companies that figure out credit scores use a scale from 300 to 900. If a person’s score is above 750, they are usually considered trustworthy.
Here’s what the different score ranges often mean:
- 851-900 (Excellent): Shows a person who’s really good at paying bills on time, is considered low-risk.
- 751-850 (Good): A good score means a strong history of paying bills on time.
- 651-750 (Average): This shows a fair history of managing credit, not too bad but not super good.
- 501-650 (Poor): This range suggests a higher risk, maybe because of missed payments or using too much credit.
- 300-500 (Very poor): Reflects a not-so-good history with problems in getting credit due to defaults.
List of Top Credit Bureaus in India
The four credit bureaus or Credit Information Companies in India are:
• TransUnion CIBIL: Established in 1968, it opened its first office in India in 2000. TransUnion is the first and oldest credit bureau in India. It maintains the credit information of over 1000 million individuals and businesses worldwide
• Experian: Established in 1996, it opened its first office in India in 2006. Experian is one of the leading global credit bureaus. It operates in India under the Credit Information Companies (Regulation) Act, 2005, and provides credit reports and scores to lenders and consumers.
• Equifax: Established in 1899 in the US, it opened its first office in India in 2010. Equifax is a joint venture between Equifax Inc., USA and seven leading Indian financial institutions. It offers credit information services, as well as a separate credit bureau for Micro Finance Institutions (MFIs)
• CRIF High Mark: Established its first credit bureau office in India in 2011, it is a leading credit agency in India that provides credit information services to over 10, 500 banks in 50 countries. It also caters to the needs of small and medium enterprises (SMEs), rural and agricultural sectors, and MFIs.
Comparing Top Credit Bureaus in India
Here is the table comparing the four credit bureaus in India:
| Credit Bureau | Year of Establishment | CEO & MD- India | Credit Score Range |
| TransUnion CIBIL | 2000 | Rajesh Kumar- MD & CEO | 300 to 900 |
| Experian | 2006 | Neeraj Dhawan- MD & CEO | 300 to 900 |
| Equifax | 2010 | Samir Bhatia- MD and CEO | 300 to 900 |
| CRIF High Mark | 2011 | Sanjeet Dawar MD | 300 to 900 |
Overview of Credit Bureaus in India
TransUnion CIBIL Limited
It is headquartered in Mumbai, India. It came into existence following recommendations from the RBI Siddiqui Committee in the year 2000.
In 2004, TransUnion CIBIL introduced credit bureau services in India, focusing on consumer information. This pioneer information and insights company, TransUnion CIBIL, is dedicated to providing an accurate and detailed overview of each individual, handling this information with utmost care.
Consumers, in turn, can trust that their data identities will lead to the opportunities they deserve. Some of their prominent customers in India include leading banks, NBFCs, and insurance firms.
TransUnion CIBIL offers various solutions, such as Analytics and Consulting, providing a range of unique analytics capabilities to transform how data is explored, shaped, and acted upon.
Their services include
- Customer Acquisition
- Fraud & ID Management
- Portfolio Management
- Collections Management
- Credit Reporting.
Experian
Experian Credit Information Company of India Private Limited was formed in November 2009. The company represents a joint venture with seven of India’s leading public and private sector banks and non-banking financial institutions: Axis Bank, Federal Bank, Indian Bank, Magma Fincorp, Punjab National Bank, Sundaram Finance and Union Bank of India.
In 2010, Experian achieved a significant milestone by becoming the first credit bureau to obtain a license under the new Credit Information Companies (Regulation) Act (CICRA) of 2005 in India.
- Experian India has since been offering its proprietary Experian credit report and score, catering to both individuals and companies.
- Beyond credit reporting, Experian provides valuable services such as fraud detection, identity verification solutions, and analytics, assisting businesses in effectively managing credit risk.
Experian operates on a global scale with a workforce of 17,800 employees spread across 44 countries. Their impact is substantial, with 3.5 billion credit decisions supported. Their efforts extend beyond business success, as evidenced by supporting 390,000 fraud victims and reaching 61 million people through Social Innovation projects.
Equifax
Bringing a rich global legacy of over 117 years in the credit industry, Equifax entered into the Indian market in 2010. The Reserve Bank of India (RBI) granted Equifax the license to operate as a Credit Information Company, marking its official entry into the Indian credit rating environment.
In India, Equifax operates through Equifax Credit Information Services Private Limited (ECIS) and Equifax Analytics Pvt Ltd.
ECIS is a joint venture that involves Equifax Inc., USA, collaborating with seven prominent Indian financial institutions. These institutions include the SBI- State Bank of India, BOB- Bank of Baroda, Kotak Mahindra Prime Limited, Religare Finvest Limited, BOI- Bank of India, Union Bank of India and Sundaram Finance Limited.
CRIF High Mark
Founded in 2007 by Dr. Anil Pandya, High Mark started as a credit bureau startup with a clear vision – to establish India’s most comprehensive and inclusive credit bureau. The bureau officially commenced its operations in March 2011, immediately after receiving the Certificate of Registration (CoR) from the Reserve Bank of India (RBI) in 2010.
CRIF High Mark stands out as India’s pioneering full-service credit information bureau, offering comprehensive coverage of credit information across all borrower segments. This includes MSME and Commercial borrowers, Retail consumers, and Microfinance borrowers, spanning both urban and rural areas throughout the country.
With an extensive database that includes businesses and individuals from over 4000 financial institutions, CRIF High Mark plays a crucial role by providing credit information services.
How Do Credit Bureaus in India Work?
Credit bureaus in India are licensed by the RBI to collect and maintain credit-related information on individuals and businesses from various financial institutions, such as banks, NBFCs, and MFIs. They use this information to generate credit reports and scores, which reflect the creditworthiness and repayment history of the consumers. Lenders use these reports and scores to evaluate the risk and likelihood of timely loan repayment by the borrowers.
What Sort of Information Do Credit Bureaus Collect?
Each of the four credit bureaus primarily gathers similar fundamental information about consumers. This encompasses personal details like name, address, Social Security number, and date of birth. Additionally, it involves credit-related information such as debts, payment history, and activities related to credit applications.
• Credit accounts, including credit cards, loans, and overdrafts, are documented by credit bureaus, detailing their balances, limits, and payment history.
• Payment histories for utility bills, such as electricity, water, gas, and telecom, are examined by credit bureaus in Indi as they reflect the financial discipline and regularity of consumers.
• Instances of defaults, bankruptcies, and inquiries are recorded by credit bureaus, offering insights into the past and present delinquencies and credit-seeking behaviour of consumers.
• Income tax records, showcasing the income and tax liabilities of individuals, are also part of the information considered by credit bureaus.
Are Credit Rating Agencies and Credit Bureaus the Same?
Understanding the difference between credit bureaus and credit rating agencies can be a bit confusing, especially because credit bureaus are sometimes referred to as “credit reporting agencies.” The main difference is in who they assess for creditworthiness.
Credit bureaus collect and maintain credit-related information on individuals and businesses, such as loans, credit cards, and payment history. They generate credit reports and scores, which reflect the creditworthiness of the consumers. Credit rating agencies, on the other hand, assess the creditworthiness of entities like governments and corporations, as well as the debt that they issue, such as bonds.
Credit Rating Agencies in India
Credit rating agencies assign ratings to the issuers and their debt offerings, which indicate the level of risk involved in lending to them. The Securities and Exchange Board of India (SEBI) has authorised these credit agencies in India:
• CRISIL: It is the first and oldest credit rating agency in India, established in 1987. It is a subsidiary of S&P Global and provides ratings for various sectors, such as banks, NBFCs, PSUs, manufacturing companies, and municipalities.
• ICRA: It was established in 1991. This credit ratings agency is an independent and professional investment information organisation.
• CARE: It is a full-service credit rating agency incorporated in 1993. It provides ratings for various industries, such as banking, NBFCs, SMEs, MFIs, and renewable energy.
• India Ratings and Research: It is a wholly-owned subsidiary of Fitch Group, established in 1995. It provides ratings for various domains, such as corporates, financial institutions, public finance, and structured finance.
• Brickwork Ratings: It is a credit rating agency, founded in 2007. It provides ratings for various sectors, such as banks, NBFCs, corporates, MSMEs, and urban local bodies.
• Infomerics Valuation and Rating: It is a credit rating and valuation agency,.that provides ratings for various segments, such as corporations, financial institutions, and infrastructure.
• Acuité Ratings & Research: It is a credit rating and research agency launched in 2005. It provides ratings for various sectors, such as corporates, banks, NBFCs, and SMEs.
Are Credit Scores from All Credit Information Companies Same?
Credit scores from all major bureaus are not necessarily the same. You might notice some differences in your credit score depending on which credit bureau’s information is used.
These variations happen because creditors may report your payment history and financial behaviours to some credit bureaus but not to others. So, one credit bureau might have more data than the other two, leading to differences in your credit score.
The important thing to remember is that your credit score can vary based on whether it relies on data from Experian, Equifax, or TransUnion. However, this isn’t usually a cause for concern.
The only time to worry is if one bureau shows a score that is significantly different from the other three. In that case, it’s a good idea to check your credit reports for any errors that could be affecting your score and dispute them if necessary.
FAQs | Credit Bureaus in India
There are four credit bureaus or Credit Information Companies (CICs) in India. They are TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. They generate credit reports and scores, which reflect the creditworthiness of the consumers.
There are six credit rating agencies in India. These are CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings. These six agencies are registered under SEBI.
CRISIL is a credit rating agency, while CIBIL is a credit bureau. CRISIL evaluates the creditworthiness of entities like companies and their financial instruments, such as bonds. CIBIL collects and maintains credit-related information on individuals and businesses, such as loans, credit cards, and payment history.
All four credit bureaus or CICs in India, namely TransUnion CIBIL, Experian, Equifax, and CRIF High Mark are approved by the RBI and operate under its guidelines and directions.
Source-transunioncibil.com, crifhighmark.com, experian.in
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