Mumbai, June 15th, 2016: To provide information solutions to micro lenders for driving access to finance and credit penetration.
Credit Information Bureau (India) Limited (CIBIL), India’s leading credit information solutions provider, today announced the expansion of its reach in the small and micro loans segment. CIBIL will partner and provide information solutions to small and micro lenders to help them make better lending decisions, grow their customer base and drive credit penetration. Satish Pillai, Managing Director and CEO, CIBIL said: “CIBIL is committed to partner in the national momentum of helping drive financial inclusion. Access to credit is one of the fundamental requirements to enable the fulfilment of aspirations of our citizens. By growing our reach in the small and micro loans segment we are able to provide richer and wider information, insights and solutions to banks and microfinance institutions to support them in driving access to finance for many more deserving consumers.”
Manoj Kumar Nambiar, President of Microfinance Institutions Network (MFIN) and Managing Director of Arohan said: “Credit information is the foundation for any lending decision to be correct and we are excited that CIBIL with its long and varied experience is launching its differentiated offering in this segment. We look forward to working closely with CIBIL in building a strong credit culture in this critical segment to further the cause of true financial inclusion."
While speaking about CIBIL’s expansion in the small and micro loan segment Ratna Vishwanathan, CEO of MFIN commented, “Although banks have started providing data to all credit bureaus, CIBIL’s expertise in data insights and solutions is very valuable in the context of a more complete credit profile. CIBIL’s experience and leadership in handling a bureau will be a good value addition to the MFI credit rating ecosystem.”
Availability of credit information insights and solutions from CIBIL has significantly contributed to driving growth in the retail credit segment while fuelling credit penetration and financial inclusion. CIBIL Insights reveal that retail loans have grown at an average CAGR of 28% over the last three years, while at the same time there is significant reduction in retail NPA rates. Credit information solutions have helped reduce the average time required for approval of a loan application from approximately 7-9 days three years ago to around 3-4 days today and have contributed to the growth in rural lending from 25% five years ago to 40% today.
CIBIL is India’s leading credit information company. It creates immense value for financial institutions by providing objective data and tools to help them manage risk and devise appropriate lending strategies, thus reducing cost and maximizing portfolio profitability.
CIBIL benefits both credit grantors and consumers by collecting, analyzing, and delivering information on credit histories of millions of borrowers. It provides its members with information on both consumer and commercial borrowers to help them make sound credit decisions. It also provides services and education to consumers to help them better manage their access to credit.