THE AWARENESS ABOUT THE CIBIL SCORES AMONG THE VARIOUS CUSTOMERS OF COMMERCIAL BANKS IN CENTRAL KERALA (A STUDY WITH REFERENCE TO GOVT.EMPLOYEES)

Abstract

Credit scoring means a system which enables a credit institution to assess the creditworthiness and capacity of a borrower to repay his loan and advances and discharge his other obligations in respect of credit facility availed or to be availed by him; Credit Information Bureau India Limited (CIBIL) is a credit information company founded in August 2000. In India, the need for a credit bureau came about in 1997, when there was a South Asian financial crisis, banks were flushed with liquidity and traditionally financial institutions lent to corporate that had documents to enable them to extend credit. Individuals did not walk into a bank and ask for loans since banks wouldn't entertain them unless they knew they were credible. A credit bureau works as a central repository, which contains the credit history of commercial and retail borrowers. The bureau provides this information to its members in the form of credit information reports. Members can use this information to make important decisions on lending. The use of CIBIL’s products has led to a massive change in the way the credit life cycle is managed by both loan providers and consumers. The article is meant to know the awareness about the CIBIL score among the customers of Commercial Banks in CentralKerala districts of Palakkad, Thrissur, Eranakulam and Idukk.