Mudra Compass

1 Myth – CIBIL is only Credit Bureau in India.

Fact – CIBIL is India’s first Credit Bureau, but is not India’s only Credit Bureau. In common Credit Report and Scores in India are also referred as CIBIL Reports and Scores. There are 3 other Credit Bureaus licensed and regulated by RBI.

• Equifax
• Experian
• CRIF High Mark

2 Myth – A Credit Bureau and a Credit Rating agency are the same.

Fact – Credit Bureau and Credit Rating Agency are distinctly different. The only similarity is the six letter word “CREDIT”.

Credit Bureau	Credit Rating Agency
It collects, maintains and stores information related to your credit history.	It assesses the ability and willingness of the issuer company for timely payment of interest and principal on a debt instruments.
It provides credit scores based on your credit history.	It provides ratings based on the risk and evaluation of companies
It is licensed and regulated by RBI.	It is regulated by Securities and Exchange Board of India.

3 Myth – Credit Bureaus track your savings and investments.

Fact – Credit Bureau as the name indicate tracks only your “credit” related data. Investments in any segments are not credit obligations and are not liabilities. Hence these are not correct indicator of your credit behavior.

4 Myth – Credit Bureaus make lending decisions – they decide if you will get a loan or not.

Fact – Credit Bureaus do not approve or decline your credit application. Instead, it facilitates lending institutions with your credit information enabling them to take informed decisions.