Cibil Defaulters List

There is no such thing as a Defaulters list. You will not be able to generate a CIBIL Defaulters List. CIBIL only provides collective information about the customer's credit line and repayment history based on the periodical information provided by financial institutions. CIBIL Score range is between 300 and 900 that helps lenders to filter applications based on the repayment track.

About CIBIL Defaulters List

CIBIL does not maintain a  CIBIL Defaulters List but provides the data about the credit history, i.e., existing loan accounts, repayment pattern, credit utilisation ratio etc. A credit score is then calculated using a proprietary algorithm based on the information available. Lenders hence do a CIBIL Score Check before loan approval to understand your financial stability and creditworthiness.

How to Check CIBIL Defaulters List?

Credit Rating in India is done by four Credit Agencies, i.e., CIBIL, Equifax, Experian and CRIF. Of them, CIBIL is the most popular as it is the first credit rating agency to be established in India. None of these agencies, including CIBIL, maintain a defaulters list. You will have access to only a Credit Report that will have your credit information.

However, as per RBI guidelines, banks and other financial institutions provide details of the suit filed, and non-suit filed accounts of Rs. 1 Crore and above and suit filed and non-suit filed accounts (willful defaulters) list of Rs. 25 lakhs and above to TransUnion CIBIL. Only banks/financial institutions will have access to this data.

If you are enjoying a credit line, then you can get a Credit Report along with the Credit Score automatically on accessing the CIBIL website. You can check for the correctness of the information provided. Late payments and non-payment of EMI will be reflected in the Credit Report, based on which the lenders will draw a conclusion about financial status. For instance, you are applying for a home loan, besides checking the number of loans and the status of other loans, the bank will specifically look for any other home loan and for CIBIL defaulter home loan. The bank will not look for a CIBIL Defaulter List as there is no separate defaulter list maintained.

You can, however, check for inaccuracies like duplication of information, incorrect information, ownership of account etc. If the CIBIL Score has depleted for any of these reasons, you can access 'mycibil.com' and lodge the dispute by accessing the online dispute form.

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How to Remove Your Name from CIBIL Defaulter List?

It is important to know that there is no such list as CIBIL Defaulter List. You can only draw a Credit Report that will you give complete information about your credit history. You can check free credit score by accessing the official website of CIBIL. If your CIBIL score is below the minimum CIBIL score required and you are unable to understand why the score is low despite making prompt payments, you can draw a CIBIL Report and check for inaccuracies, if any.

The common discrepancies are:

Incorrect personal or account details: Sometimes, the personal details and account details in the Credit Information Report may not belong to you.

Incorrect personal details: Periodical credit account details along with personal details like me, contact address, email address, PAN, employment details etc., will be provided by the financial institutions to CIBIL based on which the Credit Report is prepared. It is important to update changes in any of these details as wrong information could result in an incorrect Credit Report that could dampen your score.

Incomplete account details: Sometimes, you would have cleared all the overdue and also closed some of the loan accounts, but yet the score will not be updated. The reason for this is that the banks and financial institutions update the information to CIBIL only between 30 to 45 days. CIBIL does not make any updation on its own without confirmation from the financial institutions. If the CIBIL Score check is done within 45 days of clearing the dues or closing the accounts, the score would not have been updated. It is recommended to do the free credit score check only after 45 days of making payments.

If any of these issues surface, you can raise a dispute by filling up an online dispute resolution form available on the CIBIL website. You can dispute several issues in a single dispute by selecting the respective section. The dispute will be resolved within a span of 30 days.

Additional Reading: How to get loan for low cibil score?

How to Maintain a Good Credit Report?

Before understanding how to maintain a good credit report, let us gain knowledge of what is credit score and what a credit report is. Credit Report contains all the details of your credit profile like the number of loans accounts, history of credit, credit utilisation limit, credit mix and credit enquiries. Credit Score is the numeric representation of the credit information and is graded as Poor, Fair and Good based on the score range 300 to 900. The closer you are to 900, the better will be your score. 

If you have a credit score above 750, you are viewed as a promising borrower who will repay the loan promptly within the stipulated time. All financial institutions insist upon a minimum CIBIL Score of 750 for unsecured loans like Personal Loan and Credit Cards. If you want to maintain the score at the level of 750 and above, which will provide you access to credit facilities easily at the time of need, you will have to follow some tips diligently. 

  • Be regular in loan repayments: Aim to make the EMI and credit card payments on or before the due date. Any delay or missout in payments will bring down the score by several points. 
  • Limit credit utilisation level: If you are in the habit of utilising the credit card limit to the optimum level, then change your habit. Using a credit card beyond the level of 50% portrays you as a person solely depending on credit for sustenance and will have a negative impact on the credit score.
  • Have a good credit mix: Do not avail of unsecured loans alone. Try to have a good mix of secured and unsecured loans. This will help you maintain a good score.
  • Refrain from frequent hard enquiries: Multiple loan enquiries within a short span portrays you as a credit hungry person. This is not very impressive and will reduce your credit score by several points.

Additional Reading: What is cibil dispute?

Loan Process for CIBIL Defaulter

It is essential to understand that CIBIL or any other Credit Agencies do not maintain the defaulter's list. CIBIL only provides a Credit Score based on your repayment track, existing loan accounts, debt to income ratio etc. If your Credit Score is below the required minimum CIBIL Score level, i.e., 750 and above, you will not be eligible for credit easily. But there is a loan process for individuals with a low score as well. There are ways to get your loan application considered in spite of a low credit score.

  • There are lenders who consider loans for individuals despite a low score based on their income. If the income from salary and other sources (if any) is good enough to ensure repayment of the loan, then the loan will be approved. However, the rate of interest will be higher. 
  • Include your Spouse, Parents or Children as a co-borrower. If their CIBIL score is within the required credit score range and they have a regular income, the loan will be considered.
  • Opt for a lower loan amount.
  • Approach NBFCs or opt for P2P lending where the assessment of financial status and creditworthiness is based on the digital footprints. They have a proprietary algorithm to assign risk ratings, and they do not rely on Credit Scores. The rate of interest on these loans will be much higher and could be as high as 28% p.a.

Additional Reading: What is Cibil grievance?

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FAQs

✅Is There a Separate Loan Process for a CIBIL™ Defaulter?

There will be no separate CIBIL Defaulter list. If you have defaulted on loan repayments, you will have a relatively low score. You can resort to other alternatives available to get your loan application considered. 

  • Provide security proportionate to the loan.
  • Include a co-obligant with a good credit score and a regular income.
  • Apply for a lower loan amount.
  • Approach NBFCs or go for P2P lending, where credit score is not the measure for your creditworthiness and repayment capability.
  • With a relatively high income, your loan application may be considered by some banks but with a higher interest rate.

✅Can CIBIL™ defaulter get a loan?

A habitual defaulter is not termed as a CIBIL defaulter but will be a candidate with a very low score. If your credit score range is 300 to 600, then your loan application will not be entertained and will be outrightly rejected. But you need not be disheartened. There are NBFCs that do not assess your financial health and repayment ability with a Credit Score. They have a proprietary algorithm that makes the assessment based on your digital footprint.

The other alternatives are as given below:

  • If you can prove to them that you have other income like interest on fixed deposits, dividends from shares, rental income and are capable of prompt repayment despite the low score.
  • Provide sufficient security. Include a co-obligant with a good credit score.
  • Opt for a lower amount.

✅How can I check my CIBIL history?

You can check free credit score on the CIBIL website once a year. You can check CIBIL Score by PAN card by accessing the CIBIL website and following the steps given below:

  • Click on the Get Free Credit Score on the top right corner of the screen.
  • If not eligible for Free Credit Score, click on on the Generate Score option.
  • Provide basic details like name, contact address, mobile number, email address and PAN.
  • The CIBIL Report with Credit Score will be displayed on the screen immediately.
  • You can download the Report for reference.

✅How many years will CIBIL keep a record of defaulters?

CIBIL retains the credit information of an individual for a period of 7 years.

✅How to improve your score and not get on the Defaulters List?

Since a system like maintaining a defaulters list does not exist, you need not worry about your name being included in the defaulter's list. Your only concern should be how to increase CIBIL Score. You can work towards improving your credit score if you follow the thumb rule for a good credit score.

  • Cultivate the habit of making EMI and credit card payments on or before the due date.
  • Use credit limits judiciously.
  • Avoid revolving payment of credit card dues.
  • Refrain from frequent credit card and loan enquiries.
  • Have a proper mix of secured and unsecured loans.
  • Aim for debt consolidation to reduce the number of loans.

✅How can I get a home loan from a CIBIL defaulter?

The minimum CIBIL score for a home loan is between 650 and 750. Banks may still provide a home loan if you have a default history provided

  • Your salary certificate shows an increased salary, and you convince the bank that you can make the repayment promptly even though your past loans have not been serviced on time.
  • You include a co-obligant acceptable to the bank with a good credit score.

✅How many types of defaulters are there?

There are two types of defaulters

  • Willful defaulters
  • Non-Wilful defaulters

Wilful defaulters are the ones who intentionally default on loans. They are financially sound but do not intend to repay the loan.

Non-wilful defaulters are ones who default on loans owing to a financial crunch.

✅Who are willful defaulters?

Wilful defaulters are those who have ample resources but do not intend to repay the loan.

✅How long is the credit history kept in CIBIL?

CIBIL retains the credit history for a period of 7 years.