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What is a Credit Bureau?

Anyone who has availed of a personal loan will tell you that lending agencies ask for a credit rating or credit score. A credit score is assigned by a credit bureau. While lenders give much importance to the score, it is also necessary to know about the various credit bureaus in India

The basic definition of a credit agency or bureau would be, that it is an agency that collects information pertaining to your credit history. Based on their credit history, individuals get assigned a score. Your credit history would include your debt, your expenses, outstanding bills, credit utilisation, etc. 

Credit bureaus get information from various sources. They get information from banks, lenders, utility companies, etc. The credit reporting agencies will then collate all the information together and formulate a credit report. This credit report is then sold to lending agencies as well as individuals for a fee. You can also check your credit score for free but will need to pay some money to get the full report. 

Lending agencies, then, use the score generated by such bureaus at the time of sanctioning or disbursing an instant loan.

Credit Bureaus in India

What Is The Main Purpose Of Credit Bureaus?

At the time of disbursing a personal loan, lending agencies require some sort of an indication regarding the creditworthiness of the borrower. Since personal loans are unsecured loans and you do not need to pledge any collateral, lenders use credit scores as a sign of creditworthiness. 

This is where such bureaus come in. Credit bureaus in India will first collect all the data pertaining to the credit of the individual. They will look at any outstanding loan, repayments, payment of utility bills, and existing credit utilization among other factors. Once this is collated, they will analyze and look for any red flags from the credit history and assign a credit score or a credit rating.  

Lenders will look at the score and understand if the borrower will be able to repay the loan or not promptly.

Top Credit Bureaus in India

  • CIBIL: CIBIL or the Credit Information Bureau (India) Limited is considered to be one of the top credit bureaus of India, as licensed by the Reserve Bank of India. When CIBIL assigns you a CIBIL score, you will be given a 3-digit number between 300 and 900. The higher the CIBIL score, the higher the chances of your personal loan application being approved.


  • Experian: Experian credit bureau India was founded in 2010 and is licensed under the Credit Information Companies (Regulation) Act (CICRA), 2005. Just like a CIBIL report, the Experian credit report will contain the number of loans you have, the type of loan, your repayment history, the existing balance on the loan, and if you have defaulted on any loans. Experian will also mention the number of enquires you have made in the past regarding any new loans or credit cards. Experian will also assign you a score between 300 and 900. 


  • TransUnion CIBIL: Though CIBIL was established in 2000, it merged with Chicago-based TransUnion International and became what is today known as TransUnion CIBIL. 


  • Equifax: Equifax, an American retail credit company was established in 1899 and was licensed as a credit bureau in 2010. Equifax provides a report about an individual’s credit history and behaviour, portfolio score, risk score, etc. Equifax also assigns a credit score starting at 350-850. 


  • CRIF Highmark: CRIF Highmark was founded in 2007, and in 2010, it received its operating license. Based on an individual’s debt, repayment, duration of the loan, credit utilization, credit mix, and new inquiries, CRIF Highmark assigns a CRIF score between 300 and 900. Apart from individuals, they also provide credit ratings to commercial, microfinance borrowers, MSMEs, and others. 


  • ICRA: Earlier known as Investment Information and Credit Rating Agency of India Limited, ICRA was founded in 1991. ICRA is a publicly listed credit bureau. They offer credit ratings as well as performance ratings to companies including mutual funds, hospitals, MSMEs, etc. 


  • CRISIL: CRISIL is one of the top credit bureaus in India. They not only offer credit ratings but also conduct research and help in providing policy advisory and risk advisory services. 
Top Credit Bureaus in India

Why Should You Check Your Credit Score?

Many borrowers ask about the importance of credit ratings: if a credit score is important or if they should check their credit score before applying for a personal loan. 

Yes, whether you plan to avail a personal loan or not, you should periodically check your credit score. It gives you an idea about your creditworthiness and where you stand on the eligibility calculator as set by lenders. 

Also, if there are errors or mistakes in your credit report, you can get them corrected before it is sent to a lender.

Availing Of A Personal Loan Without A Credit Score Through Finnable

Credit bureaus in India assign a credit score and lenders use this score to determine the creditworthiness of a borrower. However, not everyone has a credit score. This is especially true for first-time applicants. That does not mean that you cannot avail of a personal loan.

Finnable disburses quick instant loans to people who have no credit score or low credit score. You can apply for a travel loan, a wedding loan or any personal loan. However, you will need to show a steady flow of income and need to have a stable job. 

You can apply for an instant loan via Finnable’s personal loan app. This online loan app is available on the Play Store. All you will need to do is create your profile, set your terms, and upload the documents. 

Though you can apply for a loan without a credit score, having one gives you an added advantage. It will not only increase your chances of sanction but you can also apply for a higher amount. 

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