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Check your CIBIL credit report before you apply for a loan

Tuesday, August 14, 2012 by Rajiv Raj

cb102n2Shyam Kanan, 28, worked with a reputed public relations agency as an account executive. He was going to get married soon and had applied for a home loan so that he could move into it and start his own family in his new home. The bank asked for his details like income, ID and address proof in the form of payslips, PAN number, passport details etc. and he provided them with everything. The bank told him that everything looked good and it looked like his loan would be approved. 

A week later, Shyam suddenly got a call from the bank saying that his loan application was denied because his credit report showed that he was a CIBIL defaulter and had not cleared his credit card dues. Shyam was shocked because as he knew he had paid off all his credit cards and had in fact cancelled his cards two years back.

He asked the bank what he needed to do to clear up the mess. His relationship manager at the bank asked him to buy a copy of his CIBIL credit report first and go through it thoroughly, identify all the mistakes in it and then fill up CIBIL's online dispute resolution form. After he completed his side of the paperwork, he waited. CIBIL got in touch with Shyam's credit card company and the company realised that they had 'forgotten' to update the records with CIBIL and made an entry in Shyam's account that he had paid off his dues. CIBIL corrected the mistake and sent Shyam an e-mail regarding the correction.

Armed with the e-mail Shyam went to his bank and his application was accepted. If Shyam had asked for a copy of his CIBIL credit report before he applied for the loan, he would have saved a lot of time waiting for the bank to process his application the first time and then running around asking for advice on how to go about the whole process.

 

MadanRajiv Raj

Rajiv is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India’s first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.

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