Common Public believes that all the Bankers, Loan Managers and Branch Managers have in-depth knowledge of analysis of CIBIL or Credit Reports by other Credit Rating Agencies like Equifax, Experian and HighRank. It has been found that more than 65% of the lending bankers lack the in-depth knowledge of the subject leading to:
- Wrong Rejection of Loans
- Wrong Sanction of Loans
Wrong Rejection of Loans:
Most of the Bankers are not customer oriented. They just draw the online TransUnion CIBIL score and will never critically examine the CIBIL reports. In case the Credit Scores are less than 750 they will just point out 1-2 deficiencies and say a big “NO” to even good borrowers. I have seen the bankers who know that the loan is highly secured but they can’t sanction it on Technical Grounds of Bad CIBIL Report. Due to the paucity of time, bankers can not themselves go into the detailed analysis of the Credit Report. In my opinion, Now the Bank Managements must hire the services of Qualified and Approved CIBIL Consultants to advise their Branch Managers in Black and White through “CIBIL or Credit Investigations Reports“.
Wrong Sanction of Loans:
Sometimes even loan defaulters enjoy good social and political reputation. Bankers get impressed with their Social and Political status and commit blunders while analysing the CIBIL and Credit Reports, which is the subject matter of professional CIBIL Consultants. The result of poor analysis of Credit History is leading to the voluminous increase in Non-Performing Assets of the Banks. In my opinion, the Banks do the following exercises to help each other and creation of proper Credit History with the CIBIL and other Credit Rating Agencies.
- The Banks must draw the lists of Irregular (likely NPA), NPA, Suit Filed, Decreed and Written Off Loan Accounts, Credit Cards and Non-Fund Based Credit Facilities.
- Banks should draw the CIBIL TransUnion Reports of the borrowers above.
- Banks should check if the Status of the above loan accounts is appearing properly in the CIBIL Reports of Individuals, Proprietors, Partners, Directors, Trustees and Guarantors of these Loan accounts.
- Banks should get the status updated immediately on war-footing in respect of above loanees.
ASK for Detailed CIBIL Credit Report Analysis of your Customers and you will find that CIBIL Consultants not only serve the interest of the consumers but also that of the lending institutions.