This advanced scoring
model will enable credit institutions to predict risks more powerfully and make
confident lending decisions, which in turn will help improve asset quality
& credit penetration.
Mr. Arun Thukral,
Managing Director, CIBIL, said, “CIBIL TransUnion Score 2.0 predicts risk more
powerfully as this scoring model has been customized for the changing Indian
market & consumer behavior. This scoring model will enable banks to better
identify good customers, thereby enabling them to provide credit to more
consumers and increase credit penetration and financial inclusion in the
country”
Mr. Anindo Mukherjee,
Executive VP & Chief Risk Officer, Fullerton India Credit Company Ltd.
said, “The
next generation of the CIBIL TransUnion Score has been developed considering
the dynamic market scenario and using advanced customer segmentation techniques
and will help us effectively manage risk while deepening our customer
relationships”
Sharper Lending
Decisions..!
Mr. Rajesh Kumar,
Executive Vice President & Head - Debt Management, Risk Intelligence &
Business Analytics, HDFC Bank, said, "CIBIL TransUnion Score 2.0 will
help drive inclusive financing by allowing us to make sharper lending decisions
even on customers with limited credit history. This development will help in
credit penetration and will benefit credit institutions, consumers as well as
the industry."
CIBIL TransUnion
Score 2.0 also provides a risk index for consumers with less than six (6)
months of credit history. Consumers who earlier obtained a score value of ‘0’,
owing to less than six months of credit history on their credit report–will now
be graded on a risk index ranging from 1 to 5,
where 1 would mean
highest risk and 5 would mean lowest risk of default. The higher the numerical
value of the score, the lower is the risk profile of the individual. This helps
credit institutions classify new-to-credit customers as high, medium or / low
risk.
300 Denoting Highest
Risk,,!
For consumers with a
credit history of more than 6 months, the CIBIL TransUnion Score 2.0 provides a
value ranging from 300 to 900, with 300 denoting highest risk and 900 denoting
lowest risk of default.
Mr. Manish Jain, GM
of analytics and decisioning services in India for TransUnion, said, “Our newest
scoring model is of great value because it provides an assessment of consumers
with both rich & relatively new credit histories”
“Credit institutions
in India have come to rely on our scoring models. In this dynamic lending
environment, We believe the CIBIL TransUnion Score 2.0 will help them make
better risk decisions, helping to open up credit to a wider consumer audience”
CIBIL TransUnion
Score 2.0 is a dynamic number that is calculated based on various parameters on
the consumer’s credit history & predicts the probability of default by the
consumer. Credit institutions can avail it along with CIBIL Credit Reports,
CIBIL Portfolio Review Reports, or /
CIBIL TransUnion Bureau Credit Characteristics.
The credit
institutions that have adopted the new scoring model will now decide on
customer’s loan application based on this new score.
CIBIL TransUnion
Score 2.0 will help credit institutions better identify good customers &
provide them with faster and affordable credit opportunities.
* CIBIL TransUnion
Score 2.0- Interpretation
For borrowers
with less credit history of 6 months or lower, there are few changes. Agencies
For new
borrowers..!
For borrowers
with less credit history of 6 months or lower, there are few changes. One, even
they will get a score.
Second, unlike
the existing credit score, which is in the range of 300 to 900, new borrowers
will be accorded a risk index numerical value ranging from 1 to 5.
The parameters
that are taken into account to give the index score include delinquency (90
days overdue), credit seeking activity (number of loan enquiries you make),
type of credit (secured or unsecured) and demographics (age and the like) to
name a few. An index of 1 denotes the highest risk & 5 the lowest.
If you are a new
borrower, be careful to always pay your bills on time and don’t make
unnecessary loan enquiries.
This might give
you a lower index (meaning higher risk) and hence, it might make it difficult
for you to get a loan when you genuinely require it.
Old Score Vs New
Score..!
For borrowers
with more than 6 months of credit history, the old scoring criteria 300 to 900
remains, but for the lower score you get. For instance, the old score of 751 to
800 will be equal to 662 to 697 in the present one.
However, you
need not panic.
A lower score
would not mean a poorer credit history. It just means that the banks will have
to adjust their score as per the new score.
“The new score
will be available to banks as of now, and as and when all banks come on to the
new score model, even consumer will get the new score,” said Mr. Thurkal. This
should be in the near future. The price for the new score will be same as the
old score
About CIBIL..!
CIBIL {Credit
Information Bureau (India) Limited} is India’s pioneer credit information
company. It creates immense value for financial institutions by providing
objective data & tools to help them manage risk, and devise appropriate
lending strategies thus reducing cost & maximizing portfolio profitability.
CIBIL benefits both
credit grantors & consumers by collecting, analyzing, and delivering
information on credit histories of millions of borrowers. It provides its members
with information on both consumer & commercial borrowers, thus enabling
them make sound credit decisions across both individuals and businesses. To
know more about CIBIL visit www.cibil.com.
About TransUnion..!
As a global leader in
credit information & information management services, TransUnion creates
economic & competitive advantages for businesses and consumers. For
businesses, TransUnion helps improve efficiency, manage risk, reduce costs
& increase revenue by delivering comprehensive solutions that leverage
data, advanced analytics & decisioning technology.
For consumers,
TransUnion provides the tools, resources & education to help manage their
credit health & achieve their financial goals. Through these & other
efforts, TransUnion is working to build stronger economies worldwide. Founded
in 1968 & headquartered in Chicago, TransUnion employs associates in about
30 countries on 5 continents. www.transunion.com/business.
Photo
(Standing L-R)
Ms. Harshala
Chandorkar - Senior VP, Consumer Relations, CIBIL, Mr. Satish Pillai - Chief Operating Officer,
CIBIL, Mr. Arun Thukral - MD, CIBIL,Mr.
Manish Jain - GM, Analytics & Decisioning Services in India for TransUnion
For further
information, contact:
Rohila Dhiman /
Devina Sabaji
Hanmer MSL
Communications Pvt Ltd
+91 9987301181 / +91
86001 01802
rohila.dhiman@hanmermsl.com
/ devina.sabaji@hanmermsl.com
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