Credit information company TransUnion Cibil (TU) is now offering borrowers access to their credit score and repayment history under a subscription model as against a static report. TU Cibil is also providing consenting customers loan offers based on their scores and lending criteria provided by banks.
Retail loans applications have tripled from 90 lakh applications in the first quarter of 2013 to three crore in the first quarter of 2017, according to TU Cibil data.
“Given the increase, we decided to run some analytics on 1.2 million consumers who have applied for their credit score,” said Hrushikesh Mehta, VP and head of TU Cibil’s direct-to-consumer interactive platform.
According to Mehta, 31% of those who sought a credit score went ahead and got a loan in the next few months. “We also found that 25% of those who check their score, paid up their delinquent loans (overdue for 90 days) to improve the same,” said Mehta. He added that interest in the score has soared after one lender (Bank of Baroda) offered a one percentage point discount for those with a credit score of over 750.
Given that there is a gap between the time borrowers seek their credit score and actually avail of the loan, TU Cibil has decided to come up with a subscription model where customers have unfettered access for one month, six months and one year on payment of Rs 550, Rs 800 and Rs 1,200 respectively.
Source: Times of India