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Cibil in pact with 31 leading MFIs to set up credit bureau
MUMBAI: Credit Information Bureau India Limited (CIBIL) has entered into an agreement with 31 leading micro finance institutions to set up a credit information bureau for MFIs.
These MFIs are part of the Micro finance Institutions Network (MFIN), which was set up recently as a self regulatory organization of MFIs, a release said.
"The establishment of Micro finance Credit Information Bureau is a vital step towards inculcating financial discipline among the borrowers of micro-loans and will increase credit penetration," Cibil's Managing Director, Arun Thukral said.
The credit bureau will help promote responsible lending and enable MFIs to assess the credit worthiness and current exposure levels of loan applicants, Thukral said.
Cibil, quoting a Crisil report, said that the Indian micro finance sector is estimated to comprise around 120 million households that translate into a credit demand of Rs 1.2 trillion.
"MFIs already serve over 25 million customers who have no documented credit history. The task of tracking the credit history of such large numbers is challenging. By supporting this initiative, Cibil will be participating in a nation-building effort," MFIN's Chairman, Vijay Mahajan said.
Presently, CIBIL has a database of over 155 million records and a member base of over 200 financial institutions. Its major shareholders include SBI, HDFC, D&B and TransUnion.
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