Lok Sabha Question No. 118 (STARRED), answered on 2018-02-09
Subject: CIBIL Negative Reports
Ministry: FINANCE
Asked by: P.R. SUNDARAM, SUPRIYA SADANAND SULE

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE

## DEPARTMENT  OF FINANCIAL  SERVICES LOK SABHA STARRED QUESTION NO: *118

TO BE ANSWERED  ON THE 9th FEBRUARY,  2018/MAGHA  20, 1939 (SAKA)

## QUESTION CIBIL NEGATIVE REPORTS

## *118:   SHRI P.R. SUNDARAM: SHRIMATI SUPRIYA SULE :

Will  the Minister  of FINANCE  be pleased to state:

- a) whether  the small businessmen  are unable  to get loan  approved  due to their  Credit Information  Bureau  (India) Limited  (CIBIL) negative  reports  for defaulting  a very small amount  which  they  have to pay,  if so, the details  thereof;
- b) the number  of such defaulters  whose  applications  for loans have been rejected  even after repayment  of their  dues during  each of the last three  years;
- c) whether   a  larger   number   of  small customers   become   defaulters   unknowingly and they  are informed  at the time  of approval  of their  loans that  such amount  is pending with   them   which   eventually becomes  huge  due  to  penalty   and  if  so,  the  details thereof;
- d) whether  the Government  has any  plan to charge  only  the principal  balance  and after repayment  of such dues their  CIBIL status may  be removed/cleared  from defaulters list,  if so, the details  thereof;  and
- e) the other  steps taken  by  the Government  in this  regard?

ANSWER FINANCE  MINISTER (SHRI ARUN  JAITLEY)

(a) to (e): A statement  is laid  on the Table  of the House.

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## FEBRUARY,  2018/  MAGHA   20,  1939   (SAKA)   BY  SHRI  P.R.  SUNDARAM AND SHRIMATI SUPRIYA SULE REGARDING CIBIL NEGATIVE REPORTS

(a)  to  (e):  Lenders   exercise   their   commercial   judgement   to  grant   loan   or  otherwise  to borrowers   based  on  the  Board-approved   policies   of  banks   and  financial   institutions (FIs).  Information   contained   in  Credit   Information   Reports   (CIRs)   obtained   from Credit   Information   Companies   (CICs,   which   include   TransUnion CIBIL  Limited, formerly Credit  Information  Bureau  (India) Limited)  is one of the factors in the credit appraisal  process.  The decision  to approve  or reject  a loan  is taken  on a holistic  basis, taking  into  account  all relevant  factors  forming  part  of the credit  appraisal  process,  and not on the basis of CIRs  alone,  and as such non-approval  of loan cannot  be ascribed solely  to defaults.

CICs only  provide  CIRs  and do not provide  any  defaulters  list.  As per the reporting practice   of  TransUnion CIBIL  Limited,   amount   overdue   is  displayed   in  CIR   and indicates   the  total   amount   that   has  not  been  paid  to  the  lender   in  a  timely   fashion, which  includes  principal  and interest  amount.  No change  in this practice,or  any  other steps in this  regard,  is under consideration of the Government.

No information is maintained regarding whether a customer has become a defaulterknowingly or  unknowingly. RBI  has  directed   CICs   to  provide   access  in electronic   format,   upon   request,   one  Free  Full   Credit   Report   once  in  a  year   to individuals  whose  credit  history  is available  with  CICs.

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