Hyderabad: In an effort to promote better credit behaviour among the public, RBI Governor Raghuram Rajan on Monday said that the Credit Information Bureau of (India) Ltd (CIBIL) will soon provide one free credit report per year to those applying. The report, used by financial institutions to decide whether or not to approve individual loans, currently entails a charge of Rs 500.
“The new provision will come into effect by the end of this year. With this, individuals can check their reports and petition against any discrepancy, if any,” said Rajan, delivering a seminar.
An individual informed about his credit score will ensure it stays up as the person would not want to jeopardise his access to cheap credit, he said. Stressing the need to expand banking in rural India, the central banker pointed out the problems posed by banks seeking collateral. “Law says collateral should not be sought. But, if the recovery is not encouraging, bankers will not come forward to offer loans,” he said, calling for tie-up of bankers and local moneylenders.
Credits Mumbai Mirror