For an individual borrower, the task of ascertaining his/her credit score before applying for a home loan has been made easier by RBI. The Central bank has directed all Credit information companies to give one full credit report free of cost inclusive of credit scores once in a year to individuals whose credit history is available with them. In the loan application process, the credit report has an important place. The credit score indicates the first impression to the lender; higher the score better are chances of approval of the loan asked for.
The RBI notification acknowledges the importance of credit report in an individual’s financial matter and as such he or she can get a copy on request. The credit report to be given to the individuals should include details indicating the full credit report being assessed by CICs so that request for fresh credit facilities could be considered properly. Another objective of the credit report is that it would provide an opportunity to the borrower to remedy the errors, if any, in the credit report.
In the background of the above objectives RBI has aptly decided to direct all CICs to provide access in electronic format, upon request and after due authentication of the requester to one free full credit report (FFCR) including the credit score once in a year i.e. January-December to individuals whose credit history is available with the CIC.
RBI has also impressed upon the CICs that the report must reflect that the latest status of the credit institutions’ exposure to the individual as per available records with them. Contents of the FFCR should match with the detailed version of the reports concerning the individuals provided to CICs including the credit score. As per recommendations of a committee set up by the RBI each customer of a Credit institution should be furnished one base level consumer credit information report (CIR) free of charge each year by each CIC.