What is CIBIL?
CIBIL is Credit Information Bureau of India Limited, which acts like a central repository of credit information in India. As many as 500 different banks and financial institutions are CIBIL’s clients and they report each of their customers (like me and you) actions to them.
So if you take a credit card from HDFC Bank, then HDFC bank reports to CIBIL about it. If you enquire about car loan to ICICI Bank, even that enquiry is reported to CIBIL, if you can’t pay your EMI for home loan with SBI Bank for a particular month, that also gets reported to CIBIL.
CIBIL to include Mobile Payment in its Credit Score Report
Cibil issues a numerical score out of 900, which indicates a customer’s payments history of loans. This score is issued to banks that need to know financial history of a prospective borrower. Only the persons with good credit score can easily get Housing loan. And now if you default on your mobile bill and you may soon become ineligible for a home loan or a car loan. Non-payment of telephone bills will also rule out the possibilities of getting a new credit card or even another mobile number.
CIBIL is trying to link the telecom utility payment history to the banking and financial records of customers and make it available as a Cibil record to banks and other financial institutions. And CIBIL is now looking at adding telecom bill payments of post-paid customers, landline users and broadband subscribers as a weightage in that Cibil score.
Once the tie-ups with telcos are in place, Banks such as ICICI, HDFC, SBI and others may see an individual’s phone bill payment history to deny or approve a car, credit card or housing loan. The database can also be used by a telecom service provider when issuing a post-paid number to an individual. It will lower delinquencies and improve their quality of customers and helps the telcos in early identification of defaulter and fraudsters.